Petco Health & Wellness Co. shares were down 13.5% to $8.80 Wednesday after the company forecast an earnings decline for the 2023 fiscal year.
The stock is down about 7.2% year to date.
Petco said it expects adjusted earnings per share of 40 cents to 48 cents, inclusive of a 12-cent-to-15-cent increase in interest expenses. That’s down from 61 cents a share for fiscal year 2022. The company expects fiscal 2023 revenue to be between $6.15 billion to $6.275 billion, compared with $6.036 billion in 2022.
Petco’s outlook reflects its new updated non-GAAP definitions, which no longer include store pre-opening expenses, store closing expenses, non-cash occupancy costs, and certain other costs in its non-GAAP add-backs. The company noted that fiscal 2023 will be a 53-week year, leading to an incremental week of operations relative to fiscal 2022.
Petco said it is targeting principal debt payments of about $100 million and between $225 million and $250 million of capital expenditures for fiscal 2023.