Petco Reports 9% Rise in Profit but Cuts Its Full-Year Forecast
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Petco Animal Supplies Inc. posted higher earnings Wednesday for its fiscal first quarter but cut its profit outlook for the year, citing a sluggish economy, marketing expenses and an internal accounting probe.
The San Diego-based pet supply retailer’s shares fell about 8% after the news.
Net income for the quarter ended April 30 rose 9% to $17.2 million, or 29 cents a share, from $15.8 million, or 27 cents, a year earlier. Revenue climbed 13% to $479.6 million. Excluding a 3-cent charge for debt retirement, the profit met analyst forecasts.
Petco lowered its profit forecast for the year ending next January to $1.66 to $1.72 a share. Its previous forecast was $1.80 to $1.81 a share.
For the fiscal second quarter, Petco expects to earn 33 cents to 35 cents a share, below analysts’ average estimate of 38 cents.
Petco said it expected to file within days its annual report for the year ended last January, which has been delayed pending an internal review of accounting errors.
Petco shares fell $2.33 to $29.97 in late trading, after the earnings were released. In regular trading, its shares dropped 74 cents to $32.30.
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