Petco Health And Wellness Co Inc ( WOOF ) reported fourth-quarter FY23 sales growth of 6.1% year-on-year to $1.67 billion, beating the analyst consensus of $1.62 billion.

Comparable sales declined 0.9% versus last year and increased 4.4% on a two-year basis.

Gross profit decreased 3% Y/Y to $606.348 million, with a profit margin of 36.2%. Adjusted EPS of $0.02 matched the analyst consensus.

Operating income for the quarter plunged 99.7% to $166,000. Adjusted EBITDA decreased 33.3% Y/Y to $105.3 million.

Petco held $125.4 million in cash and equivalents as of February 3, 2024. Cash provided by operating activities for the quarter totaled $47 million, with a free cash flow of $(2.0) million.

Outlook: Petco expects first quarter 2024 net sales of ~$1.5 billion versus the Street view of $1.56 billion.

The company sees first quarter adjusted EPS of $(0.06) against an estimate of $(0.01). For fiscal 2024, the company expects a capital expenditure of ~$140 million.

Price Action: WOOF shares are trading lower by 5.86% at $2.41 on the last check Wednesday.