Petco Health and Wellness appoints new CEO Joel Anderson to lead turnaround

From Nasdaq, Inc.: 2024-07-22 09:24:00

Petco Health and Wellness Co. (NASDAQ: WOOF) announced Joel Anderson as its new CEO on July 18, 2024, causing little excitement in the stock market. Anderson, a seasoned retail executive, previously led Five Below Inc. The stock initially surged to $3.69 but dropped 6% in the following days due to market concerns about the company’s direction.

Joel Anderson is a retail industry veteran with over 30 years of experience. As the former CEO of Five Below, he oversaw the company’s expansion from 366 to over 1,500 stores and grew revenues from $500 million to over $3.5 billion. Anderson will now take the helm at Petco on July 29, 2024, following his successful track record at Five Below.

Petco’s stock has been trading in a rectangle channel pattern, hovering between $4.14 and $3.13. This follows a pennant breakout after the Q1 2024 earnings release. Meme stock influencer Roaring Kitty’s position in Chewy Inc. (NYSE: CHWY) also influenced trading. Support levels for WOOF stock are at $3.13, $2.70, $2.34, and $2.15.

In its Q1 2024 earnings report, Petco beat expectations with an EPS loss of 4 cents, higher than estimates by 2 cents. Revenues fell 1.7% year-over-year to $1.53 billion and net loss was $46.5 million. The company reported growth in Services & Other, services & vet, fresh frozen, and companion animal sales. Despite a net loss, Petco maintains strong liquidity.

Petco issued guidance for Q2 2024, forecasting an EPS loss of 2 cents and revenues around $1.525 billion, in line with consensus estimates. Interim CEO Mike Mohan detailed the company’s turnaround strategy, focusing on store operations, pricing, assortment strategy, marketing, and inventory management. The company aims to return to profitability by driving changes in its organization.



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