Latest news with #Petco
Yahoo
a day ago
- Business
- Yahoo
Chewy Stock Has a Lot to Prove This Week
Chewy announces its fiscal second-quarter report before Wednesday's market open. Physical retailer Petco shares took a big hit after a bad report. Chewy has momentum on its side, but it will have to justify the upticks with another blowout performance. 10 stocks we like better than Chewy › It's time to see if Chewy (NYSE: CHWY) shareholders will be given a treat for a job well done. The popular online retailer of pet supplies and other essentials reports its fiscal first-quarter results on Wednesday morning. There are a lot of mixed signals out there in the world of pet stocks. Brick-and-mortar retailer Petco Health & Wellness saw its stock plummet 23% on Friday after offering up a disappointing financial report. The stock has shed nearly 85% of its value over the past year. Chewy's momentum is marching to a more upbeat drum. The shares may be just shy of where they were five years ago, but the e-tailer's stock has more than doubled over the past year. Unlike Petco, expectations are high for Chewy this week. Let's take a closer took at what investors should expect heading into this telltale quarterly update. Chewy came through with a blowout fiscal fourth quarter three months ago. Net sales soared 15% for the holiday quarter that ended on Feb. 2, its strongest year-over-year growth in three years. After six periods of single-digit top-line growth, it finally returned to double-digit growth. The strong showing was enough to lift full-year sales growth to 6%. There's a catch, of course. Given the nuance of Chewy's fiscal year, there was an extra week in the fourth quarter as well as for the entire fiscal year. If you back that out -- the extra 8% more days for the quarter and 2% more for the year -- revenue would've climbed just 4% in fiscal 2024. The 15% quarterly jump would be pared back to the high single digits. It was still a strong beat, particularly on the bottom line where Chewy is earning its upticks. The year ended on some positive notes. After its active customer count dipped in the two previous years, that audience widened to 20.5 million, tacking on 431,000 in net adds for the year. It's still lower than the 20.7 active accounts it was serving at the end of fiscal 2021, but a welcome reversal after sliding to 20.4 million and then 20.1 million in the two subsequent years. Customers are also spending more. Net sales per active customer clocked in at $578, a decent step up from $555 in fiscal 2023 and $496 the year before that. Autoship -- the platform that allows customers to receive discounts on advance orders placed for regular intervals -- now accounts for 80.6% of total sales on the platform. Authoship sales rose 10% last year, well ahead of the overall growth rate of just above 6%. Chewy's own guidance for the quarter in late March calls for $0.30 to $0.35 in earnings per share on $3.06 billion to $3.09 billion in net sales. Ahead of Wednesday's report before the market opens, analysts are perched near the high end of that range. The consensus estimates see Chewy's earnings per share rising 10% to $0.34 with the top line rising 7% to $3.08 billion. A lot has happened since pet stocks initially soared early in the pandemic. Savvy investors caught on that folks sheltering in place and working from home would lead to a spike in pet and cat adoptions. In theory, the business should be booming as the puppies and kittens that folks took in five years ago are much larger and hungrier furry companions today. Chewy has been aggressively buying back stock, a smart move in retrospect given the rising shares over the past year. The stock may not seem cheap at 39 times forward earnings -- and a still steep multiple of 32 if we look out to fiscal 2026 -- for a stock growing its business in the single digits. Thankfully it does seem to be turning the corner in terms of growing its active customer base again. It will still have to deliver a blowout performance with the shares soaring over the past year. All treats must be earned, after all. Before you buy stock in Chewy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Chewy wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!* Now, it's worth noting Stock Advisor's total average return is 792% — a market-crushing outperformance compared to 173% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chewy. The Motley Fool has a disclosure policy. Chewy Stock Has a Lot to Prove This Week was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Petco price target raised to $2.50 from $2.10 at BofA
BofA raised the firm's price target on Petco (WOOF) to $2.50 from $2.10 and keeps an Underperform rating on the shares after the company reported fiscal Q1 adjusted EBITDA ahead of consensus. The firm raised its FY26 adjusted EBITDA view to $386M from $381M to reflect Q1 upside and raised its FY26 adjusted EPS view by 2c to 11c, noted the analyst. While Petco continues to make progress on cost transformation efforts before it 'shifts back to growth/offense,' the firm sees continued same-store sales softness in the near-term as well as longer-term risk that market share erosion could continue, the analyst tells investors. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See today's best-performing stocks on TipRanks >> Read More on WOOF: Disclaimer & DisclosureReport an Issue Petco price target lowered to $4.50 from $5 at Morgan Stanley Petco Health and Wellness Faces Challenges Amid Declining Sales and Market Share Risks Petco price target raised to $3.50 from $3 at Wells Fargo Petco Reports Q1 2025 Results, Reaffirms Outlook Closing Bell Movers: Lululemon falls over 20% on soft guidance Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
Petco improves service offerings, plans membership program relaunch
This story was originally published on CX Dive. To receive daily news and insights, subscribe to our free daily CX Dive newsletter. Petco is improving the omnichannel customer experience of its service offerings, including grooming and veterinary care, executives said on a Q1 2025 earnings call Thursday. The pet care retailer plans to relaunch its Vital Care members program in 2026, according to CFO Sabrina Simmons. The current program offers discounts on pet health needs for an annual membership fee. The goal is to 'create a more personalized long-term loyalty experience,' CEO Joel Anderson said. Petco is also revamping its product assortment to align with consumer demand and increasing shelf space to improve product availability. 'From the customer perspective, we are improving shopability with higher in-stock availability. When you put all this together, it reinforces Petco as a reliable destination for all our customers and care needs,' Anderson said. While Petco works to return to profitability, the pet care company is focusing on providing a better, more unified experience for customers. Net sales decreased 2.3% year over year to $1.5 billion and comparable sales decreased 1.3%, according to an earnings report. Services, including grooming and veterinary care, were a bright spot, delivering positive net sales of 1% year over year. Services are Petco's fastest-growing business and the company invested in improving its offerings, Anderson said. 'In my view, our services offering is what fortifies our competitive moat,' Anderson said. The pet retailer upgraded the software to book grooming appointments to provide customers more flexibility and time slots and updated its vet scheduling system to ensure better coverage. 'Almost 50% of our customers schedule a grooming appointment online,' Anderson said. 'And if they don't see openings or they have to wait a week or two, they're going to consider somebody else besides Petco. So that change has been very, very positive for us.' The company also made productivity improvements in both hospitals and grooming operations. Despite modest sales, executives are confident in the resilience of the services category, as grooming and veterinary care are more needs-based. Anderson believes Petco's service offerings will drive in-store traffic, retention and loyalty. The company's current Vital Care membership has also weighed on sales, as it has deemphasized the program, Simmons said. 'But because we have been deemphasizing that, while we work to relaunch it, that is within services and others. And that's actually been a bit of a drag. Our core service business without that is actually quite healthy,' Simmons said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Docusign, Manchester United, Petco: Trending Tickers
Docusign (DOCU) shares drop lower in Friday's trading session after reporting that first quarter billings fell short of expectations while topping revenue estimates. British soccer club Manchester United (MANU) is seeing its stock soar after lifting its adjusted EBITDA full-year forecast. Pet retailer Petco (WOOF) sank by over 20% after missing its quarterly sales forecasts as its comparable sales saw wider-than-expected declines tied to tariffs. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. It's time for our trending tickers. We're watching DocuSign on the decline, Manchester United kicking higher, and Petco is sinking. Let's start with DocuSign. It's seeing some of the lowest share prices in over a month. The company's first quarter beating estimates on revenue but missing billings expectations. And the company also adjusting its full year billings outlook, signaling potential stalling for its growth. So the shares as you can see are tumbling there. Um and you know, really it was that billing's forecast that accounts for the declines here. I I you know, DocuSign has been such an interesting story because obviously this was a pandemic sort of really sea change in the way that we signed documents. But since then the normalization happened and then it just hasn't seen that recovery. I mean I was looking back to 2021, the high in the stock 31005 was the high and it's trading what around 75, 76 now. So it's and it's just been bumping along at this level for a very long time. Yeah. So what do Bulls say on a day like this when the stock is just getting wrecked here? Uh team at Jeffries led by Brent Till, uh friend of the show. Uh Brent is sticking with this one. Uh told his clients he would consider that reaction overdone. He still sees this one in his words as a top mid-cap value play. He says he argues the Q1 jitters will pass, product stories broadening out, no change, he says, to leading core signature business. Maintains the buy. He is in the minority though, right? Because there are five buys on this one, 15 holds, and one sell. Target 105. All right, Manchester United shares are up after reporting third quarter earnings despite missing revenue estimates. The football club sharing some rallying news and adjusting their forecast for remainder of the year. Uh this one stock jumping, football club boosts its adjusted guidance for the year. Uh I do see some analysts out there saying, and this is the team also, Jeffries, uh saying the company raised the sales outlook, increased the adjusted guidance, reflects the impact of ongoing cost-cutting efforts. They have a buy. Target is 26. Man United has had a rough year. And so this coming it's down hard because they haven't been playing well. Um and so, you know, it's funny because obviously we don't have really a lot of publicly traded access to sporting teams here in the US, but in Europe, the fate of the stocks is frequently tied to whether they're winning or losing because the thinking I guess if they're losing not as many people are going to be spending money on the club. Um and Man United had a bad season. It lost the Europa League final against Tottenham. Um and that that was back in late May and we saw the stock really drop on that. So this a relief for investors. It looks like that they're cutting cutting costs and trying to to mitigate some of the losses. And it's three. I mean, there's not a ton of coverage and they're split anyway. Two buys, two holds. Yeah. All right, let's talk about Petco. Health seeing losses today following the announcement of its first quarter earnings. Sales for the company down 2.3% this quarter. Comparable sales fell 1.3%. The pet supply retailer says that tariff uncertainties are a primary cause. In addition to growth initiatives which aren't expecting results until late 2025 here. So, um I feel like, you know, Wolf is the ticker on this. And I feel like we always make sort of the Wolf joke because they've had some disappointing quarters as of late. This is not the first that we have seen here um for Petco, unfortunately for them. City uh neutral on this one. I see them cited as saying they see the results is actually encouraging. Uh they argue the weakness was overblown. Changes, they told their clients, are happening in stores which could potentially drive a return to sales growth in the second half. Tariffs, they they emphasize, are being mitigated. Uh stock is down pretty hard this year about 25%. Most analysts like City are are on the sidelines. I mean, you're a pet owner. I know we've talked about this before. Are you a Petco customer? I am not. I'm not a Petco guy. We go in there occasionally. But usually I mean, I think a lot of pet owners you know, order their stuff online now. And City says, uh to your point, the cat category we set in May and the dog category we set last week in case you're wondering. For those of us with dogs and cats. Big news there. I've just a dog household in my case. Nothing wrong with that.
Yahoo
4 days ago
- Business
- Yahoo
Why Petco (WOOF) Stock Is Nosediving
Shares of pet-focused retailer Petco (NASDAQ:WOOF) fell 24.1% in the afternoon session after the company reported weak first-quarter 2025 results, as both its revenue and EBITDA guidance for the next quarter missed Wall Street's estimates. The underwhelming sales outlook implied low-single-digit decline in second-quarter, signaling limited demand recovery. On the other hand, Petco exceeded analysts' EBITDA and EPS estimates. Still, this was a challenging quarter. The shares closed the day at $2.78, down 24% from previous close. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Petco? Access our full analysis report here, it's free. Petco's shares are extremely volatile and have had 72 moves greater than 5% over the last year. But moves this big are rare even for Petco and indicate this news significantly impacted the market's perception of the business. The biggest move we wrote about over the last year was 2 months ago when the stock gained 35.1% on the news that the company reported impressive fourth quarter 2024 results. Sales were in line with expectations, while EBITDA came in significantly ahead. Despite the sales decline recorded during the quarter, Petco held its ground on profitability as management provided upbeat guidance for the first quarter which pointed to low single-digit sales declines but an EBITDA margin improvement, which helped ease investor concerns. All told, this was a strong quarter on the profitability front, even if top-line growth remained sluggish. Petco is down 31.5% since the beginning of the year, and at $2.81 per share, it is trading 51.3% below its 52-week high of $5.77 from October 2024. Investors who bought $1,000 worth of Petco's shares at the IPO in January 2021 would now be looking at an investment worth $95.58. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
