Petco's first-quarter earnings beat analysts' estimates, and while that didn't stop shares from falling just over 1%, the pet supplies retailer raised its full-year guidance on the strength of the results.
Petco has benefited from pandemic-era pet adoptions, a benefit the company doesn't expect to see diminish. The pet supplies retailer is building out its pet services, such as veterinary care and training programs, and it expects that new pet owners will return to its stores again and again for supplies. Many of those new pet owners are younger consumers, who tend to spend more on their pets in the areas of food, treats, and even pet apparel.
“We’re attracting new customers and gaining market share in a growing category,” said Ron Coughlin, chairman and chief executive, in a press release.