StifelAn interesting comment from yet another analyst. GLTA
Retailer Pet Valu Holdings Ltd. slipped after the premarket release of its second-quarter results on concerns of slowing sales growth.
The Markham, Ont.-based company reported adjusted earnings per share of 36 cents, down 8 per cent year-over-year and 2 cents higher than the Street’s expectation. However, same-store sales increased just 6 per cent, falling short of the 9-per-cent projection.
“The company maintained its 2023 guidance calling for same-store-sales growth of 7-10 per cent but limited EPS growth of 2.5 per cent year-over-year due to gross margin pressure from currency headwinds,” said analyst Martin Landry of Stifel. “The rollout of Pet Valu’s new distribution center in the GTA is on plan with shipments expected to start this month. We expect PET’s shares to be up today on the back of these results although the lower than anticipated same-store-sales may be in focus. Same-store-sales will need to accelerate (vs. Q2/23 levels) in the back half for PET to meet its 2023 SSS guidance.”