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Petco (WOOF) stock is skyrocketing after the pet retailer projected better-than-expected adjusted earnings for fiscal 2025, with its first quarter earnings forecast to beat estimates.
Market Domination hosts Josh Lipton and Julie Hyman discuss the details, noting how the company's shift in strategy is contributing to improved earnings and guidance.
To watch more expert insights and analysis on the latest market action, check out more Market Domination here.
Petco though, shares, they're surging Thursday after the pet retailer projected better than expected adjusted earnings for fiscal 25. So this stock is surging. Q1 earnings forecast beats. They see adjusted EBITDA between 82 and 83 million. The estimate, it looks like on the street was closer to around 75 million. See Morgan Stanley, they are equal weight the names, cited as saying profits being prioritized over sales in the short term, underscores opportunities and challenges in executing a retail turnaround here.
Yeah, the company is changing its footprint too of how many stores it has. They're going to aggressively close a store count, cut store count, I should say. They're cutting by as many as many as 30 locations this year. They cut by 25 last year, and that's one of the reasons that the EBITDA numbers are looking a little bit better because sales are still expected to fall this year. So it's just the earnings lever. By the way, I was just talking about short interest in Kindred. Short interest in Petco is very high. 39% of float is sold short. So, probably seeing a short squeeze today in those shares.
I should check out Petco.
What are you doing?
I mean, the dog and the two cats, I should.
You've never been in a Petco?
I've never been to Petco.
And you live in the suburbs and you've got all these pets?
Yeah, well, I'm relatively new to the suburbs, you know, I'm not easing in. That's really.
