Petco Health & Wellness Company, Inc. Class A (WOOF)

The company's stock experienced a significant decline of 35.22% between November 25, 2024, and November 21, 2025. In Q1 2025, Petco reported a miss on both EPS and revenue forecasts, but the stock saw a 2.53% increase in after-hours trading. In Q2 2025, Petco surpassed expectations with an EPS of $0.05 and revenue of $1.5 billion, leading to a 0.94% increase in after-hours trading. In Q3 2025, Petco reported adjusted earnings of $0.03 per share, exceeding analyst estimates, and the stock rose 6.45% after the earnings announcement.

While detailed data is not readily available, the company has noted "softness in discretionary categories", suggesting that demand for non-essential pet items might fluctuate. The pet industry as a whole has been described as "relatively flat", which could imply less pronounced seasonal peaks and troughs compared to highly seasonal industries.

Petco's business focuses on enhancing the lives of pets, pet parents, and partners by offering a range of products and services, including pet food, supplies, veterinary care, grooming, training, telehealth, pet health insurance, and adoption programs. Petco also offers products under various brands, including WholeHearted, Reddy, and Well & Good.

Petco has a significant presence across the United States, Mexico, and Puerto Rico. The company operates over 1,500 retail locations, in-store veterinary hospitals, and a digital platform.

Petco's brand reputation has been influenced by its financial performance and a class-action lawsuit alleging false and misleading statements between January 14, 2021, and June 5, 2025. The lawsuit claims that Petco's business model of selling premium pet food and its pandemic-related tailwinds were unsustainable. Challenges in sustaining and increasing stock value due to shifts in consumer spending habits, intensified competition, and macroeconomic pressures can indirectly affect brand reputation.

Petco is primarily owned by institutional shareholders, who hold approximately 123.01% of the company's stock, and insiders, holding about 133.69%. Major institutional owners include CVC Management Holdings II Ltd., Canada Pension Plan Investment Board, Dimensional Fund Advisors Lp, Vanguard Group Inc, and BlackRock, Inc. Scooby Aggregator LP is noted as the largest individual shareholder, owning 60.18% of the company's shares.