Petco Health and Wellness Co Inc (NASDAQ: WOOF) shares are trading higher Thursday after the pet retailer posted fourth‑quarter results that included a slight revenue beat.
WOOF reports a narrower quarterly loss as margins improve and EBITDA rises, despite a 2.4% sales decline.
Petco Health and Wellness Company, Inc. (NASDAQ: WOOF) surged roughly 30% Thursday after Jefferies upgraded the pet retailer to “Buy” from “Hold,” saying the company has completed its turnaround and is poised for growth. Jefferies said Petco enters fiscal 2026 with liquidity and profitability concerns largely behind it, and that the breadth of planned initiatives plays to the retailer's strengths rather than relying on an improving macro environment.
Petco plans to expand the range of consumables, supplies and services it offers for pets as it moves into the next phase of its operational plan, shifting its focus from cost savings to growth, Petco CEO Joel Anderson said Wednesday (March 11) during the company's fourth quarter earnings call.
Petco Health and Wellness Company, Inc. (WOOF) Q4 2025 Earnings Call Transcript
Shares of Petco Health & Wellness jumped after hours on Wednesday after the pet-supplies retailer said it expects sales to rebound this year, as efforts to overhaul its store selections and lean more into services like dog grooming and training are starting to pay off.
The company expects sales in 2026 to be flat to up 1.5%, a turnaround from a 2.5% decrease in revenue last year.
Petco (WOOF) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Petco Health And Wellness Company, Inc. (WOOF) Q3 2025 Earnings Call Transcript
Petco is prioritizing margin growth over revenue, driving profitability despite ongoing top-line declines. WOOF's strategic focus for 2026 is leveraging in-store services, especially veterinary clinics, to boost merchandise sales and differentiate from online and grocery competitors. Valuation remains attractive: WOOF trades at a price-to-book of 0.71 and an EV/EBITDA of 8.97, with a 2026 price target of $3.79 per share—29% upside.
Petco has reported that a setting within one of its software applications made customers' personal information accessible online. The retailer filed data breach reports in California, Massachusetts and Texas.
Pet products and services giant Petco disclosed a data breach on Wednesday in a filing with California's attorney general, which the company says involves the personal information of its customers.