Petco Health and Wellness Co. posted worse-than-expected adjusted earnings for its second quarter and said sales rose, but were below Wall Street expectations.
The pet food and health company posted a profit of $13.5 million, or 5 cents a share, in the quarter ended July 30, down from $75.1 million, or 28 cents a share, in the same period a year ago.
Stripping out one-time items including asset impairments and equity-based compensation, adjusted earnings were 19 cents a share. Analysts polled by FactSet had been expecting 22 cents a share.
Revenue rose 3%, to $1.48 billion, below analyst expectations of $1.5 billion, according to FactSet. Comparable sales, which strips out the effects of store openings and closings, rose 3.8%.
Petco said the drop in its bottom line was driven partially by a $55.4 million non-cash change in the fair value of one of its investments and $10.9 million in integration-related costs tied to the buyout of Thrive, the company's veterinary joint venture.
Shares fell 5.9% in premarket trading, to $14.80.
