06:34 AM EDT, 05/15/2024 (MT Newswires) -- Petco Health & Wellness' (WOOF) stock gained early Wednesday after the pet store chain hired former Lululemon Athletica (LULU) and Gap (GPS) executive Glenn Murphy as executive chairman of its board.

Murphy will assume the post with immediate effect and support the company's push to improve profitability and implement strategic actions to boost long-term growth, Petco said late Tuesday. Shares of the company have dropped 35% year-to-date, but rose 5.4% in premarket activity.

"In evaluating the executive chairman role over the past several months, I have built conviction that there are many tangible opportunities to improve near-term operating and financial performance and deliver attractive long-term growth," Murphy said in a statement. "I look forward to working closely with management and the board of directors toward these objectives."

Murphy currently serves as chief executive of consumer-focused investment firm FIS Holdings, according to Petco. Before founding FIS, he was chairman and interim executive chairman of athletic apparel retailer Lululemon, and served as chairman and CEO at clothing and accessories retailer Gap for a period of seven years.

"Glenn is a proven leader and innovator with a track record of success across multiple retail sectors over the past three decades," said Cameron Breitner, a member of the board. "His experience driving profitable growth through periods of transition will provide great value to Petco's leadership team and the board of directors during this important period for the company."

Petco will also task Murphy to lead the company's search process for a permanent CEO. In March, Ron Coughlin stepped down from the top role, with R. Michael Mohan succeeding him on an interim basis. Mohan has been a lead independent director of the Petco board since July 2021 and previously served as chief operating officer at Best Buy (BBY).

The company also reported in March fiscal fourth-quarter adjusted earnings of $0.02 per share, down from $0.20 the year before. Revenue inclined to $1.67 billion from $1.58 billion on an annual basis. At the time, Petco opted not to provide full-year guidance due to the leadership change.

Price: 2.1500, Change: +0.11, Percent Change: +5.39