Petco Profit Down 37%; Shares Sink on Forecast
Shares of Petco Animal Supplies Inc. fell 12% after the company lowered its 2005 profit forecast to a range of $1.29 to $1.33 a share, excluding some items.
The No. 2 U.S. retailer of pet products had cut the forecast in August, to $1.36 to $1.44 a share, citing gasoline prices and marketing costs.
In reporting its fiscal third-quarter earnings Tuesday, San Diego-based Petco also forecast fourth-quarter profit, excluding items, of 44 cents to 48 cents a share.
Petco posted net income of $13.2 million, or 23 cents a share, for the quarter ended Oct. 29. That was down 37% from $21 million, or 36 cents, a year earlier. The company cited markdowns and costs related to Gulf Coast hurricanes.
Quarterly revenue rose 8.1% to $492.3 million.
Petco made its announcement after the close of regular trading. The company’s shares fell $2.89 to $20.48 in late trading after rising 9 cents to $23.37 in the regular session.
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