Petco (NASDAQ:WOOF) shares surged 36% on Thursday after the pet retailer projected better-than-expected adjusted earnings for fiscal 2025.
The company expects its adjusted EBITDA to increase to between $375 million and $390 million from $336.5 million in 2024, ahead of the consensus of $371.6 million.
Petco expects full-year sales to decline by low single digits.
For Q4, Petco reported revenue of $1.6 billion, down 73% year-over-year due to the negative impact from the loss of the 53rd week in 2023 but in line with Street estimates.
An adjusted loss of $0.05 per share, however, missed analysts estimates of breakeven.
"Our results in the fourth quarter demonstrate the progress we've made to return Petco to retail operating excellence," Petco CEO Joel Anderson said in a statement.
"While there is more work ahead, I am confident our new leadership team is well-positioned to build on this early momentum, deliver double-digit adjusted EBITDA improvement in 2025 and set the business up for sustainable profitable growth."
Petco also annoucned on Thursday that it has partnered with Uber to bring its pet products to the Uber Eats app.