Yahoo Finance Live anchors discuss the rise in stock for Petco following third-quarter earnings.
BRAD SMITH: Well, another company that we're watching here today is Petco, ticker symbol WOOF, W-O-O-F. They are barking higher today. It's-- barking up the right tree, we should say. It's up by about 8 and 1/4%, following the third-quarter earnings report that saw the pet supply retailer top revenue estimates as same-store sales grew over 4% here.
We were having-- we've continued to have the conversation around how many of the additional members of the family, in terms of the furry four-legged friends, that came on board during the pandemic, how people would continue to buy into that experience for them. We've seen some of the actual items start to decrease in sales. And that particularly on, you know, the leashes.
But those are things that can-- those can be stocked on the inventory front and held for future seasons. So now, it's just about turning through some of the food as well. And then additionally for Petco, the add on of that wellness business that they've had, too, has been something.
BRIAN SOZZI: Yeah, that's why these stocks-- Petco, even Chewy-- look, they're often called recession-proof or recession-resistant. End of the day, you have a pet, you have to feed your pet.
Now, where you have seen cutbacks, to your point, Brad, in some of those more discretionary areas. Does that new puppy need the jacket? Do they need a raincoat? Do they need shoes? If you're feeling pinched in your overall budget, probably not. Other thing, too, probably a good read through from this Petco quarter to Chewy when they report in about two weeks.
JULIE HYMAN: Yeah, we'll see what-- health, by the way, the health content-- the health segment of the business still seeing fiscal year adjusted EBITDA $580 to $595 million. So unchanged on that forecast. Again, that's another segment of their business that they have leaned heavily into is pet care, health care.
BRIAN SOZZI: I saw dog wearing socks last week. Is that a thing?
BRAD SMITH: The dog boots those are thing.
BRIAN SOZZI: Those are a thing?
BRAD SMITH: Yeah, I mean, look--
BRIAN SOZZI: How do you put them on?
BRAD SMITH: You just slide them on their paws.
JULIE HYMAN: Yeah, and then they--
BRIAN SOZZI: Really?
JULIE HYMAN: Sometimes they have like drawstrings or elastic around the top.
BRIAN SOZZI: It sounds like an awful dog experience.
JULIE HYMAN: Sparky doesn't wear those but maybe--
BRIAN SOZZI: No.
JULIE HYMAN: --he should?
BRIAN SOZZI: No, no.
JULIE HYMAN: But also you don't want ice on the pads, right?
BRAD SMITH: Right.
JULIE HYMAN: You don't want ice on the paws, it's not great for them.
BRAD SMITH: Yeah. I used to put the rubber ones on.
BRIAN SOZZI: Really?
BRAD SMITH: Yeah, I got videos.
BRIAN SOZZI: OK, I used to just walk my dog in the snow with no shoes. This was like, what, 1991? Why do they need shoes? They didn't need shoes then.
BRAD SMITH: All right, we're getting the hard wrap.