Pet Valu Holdings Reports Strong Fourth-Quarter Performance
Pet Valu Holdings reported better-than-expected fourth-quarter profit and revenue on Tuesday, defying a challenging consumer environment. The Canadian pet food and accessory retailer posted net income of 28.8 million Canadian dollars ($21.2 million), or C$0.40 a share, up from C$25.9 million, or C$0.36 a share, in the same quarter of the previous year.
Analysts had estimated earnings of C$0.51 a share, but Pet Valu delivered adjusted earnings of C$0.54 a share, beating expectations. The company’s revenue also saw an increase of 7.8% to C$286.9 million, surpassing the projected rise to C$285.2 million.
System-wide sales rose by 5.1% in the period, totaling C$379 million, with same-store sales growth increasing by 1.9%. Pet Valu reported that customers were purchasing more per transaction this quarter.
The company expanded its reach during this period, adding 17 new stores, resulting in a total of 783 stores across its network at the end of the quarter.
President and CEO of Pet Valu, Richard Maltsbarger, expressed satisfaction with the company’s ability to meet growth expectations in the face of changing consumer demand. He also emphasized that Pet Valu anticipates continued growth momentum throughout 2024.
Key Points:
– Pet Valu targets revenue growth of C$1.11 billion to C$1.14 billion for 2024.
– Same-store sales growth expected to be between 2% and 5%.
– Adjusted earnings per share forecasted to be between C$1.57 and C$1.63.
Pet Valu Holdings remains optimistic about its future prospects as it looks to meet and exceed market expectations.
Analyst comment
Positive news: Pet Valu Holdings reported better-than-expected fourth-quarter profit and revenue, beating analysts’ estimates. The company’s net income and revenue saw an increase, with system-wide and same-store sales growth also rising. Pet Valu plans to further expand its reach and expects continued growth momentum in the future, targeting higher revenue and adjusted earnings per share. Overall, the market is likely to respond positively to the company’s strong performance and optimistic outlook.
