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Petco Turnaround Continues on Services, Auto-Ship Growth

Bloomberg Markets •
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Petco Health & Wellness Co. shares rose as much as 14% in postmarket trading Wednesday after the pet supply retailer reported profit above Wall Street expectations and comparable sales grew for the second straight quarter after a year of declines.

Adjusted Ebitda of $122.2 million beat consensus estimates of $109.6 million. Net sales for the quarter of $1.49 billion were in line with analyst expectations and little changed from a year earlier.

The company said sales figures were hurt by stronger-than-expected points redemptions when it relaunched its membership program in late June, and that previously sales had been trending ahead of its forecast.