Core Viewpoint - Petco Health and Wellness Company, Inc. is facing a class action securities lawsuit due to alleged securities fraud that affected investors between January 14, 2021, and June 5, 2025 [1] Group 1: Lawsuit Details - The lawsuit claims that Petco's pandemic-related business advantages were not sustainable and that its business model, which focuses on premium pet food, was overstated [2] - It is alleged that the defendants minimized the true extent of the issues facing Petco, including the necessary changes to address these problems and the negative impacts on comparable sales [2] - The lawsuit asserts that the defendants misrepresented Petco's ability to achieve sustainable and profitable growth, leading to materially false and misleading public statements [2] Group 2: Next Steps for Investors - Investors who experienced losses in Petco during the specified timeframe have until August 29, 2025, to request appointment as lead plaintiff, although participation in any recovery does not require this [3] - Class members may be eligible for compensation without incurring any out-of-pocket costs or fees [3] Group 3: Firm Background - Levi & Korsinsky, LLP has a history of securing significant settlements for shareholders and has been recognized as one of the top securities litigation firms in the United States for seven consecutive years [4]

Core Viewpoint - Petco Health and Wellness Company, Inc. is facing a class action securities lawsuit due to alleged securities fraud that affected investors between January 14, 2021, and June 5, 2025 [1] Group 1: Lawsuit Details - The lawsuit claims that Petco's pandemic-related growth was not sustainable and that its business model, which focuses on premium pet food, was overstated [2] - It is alleged that the company downplayed the severity of issues affecting its business and the necessary changes to address these problems [2] - The defendants are accused of overstating Petco's ability to achieve sustainable and profitable growth, leading to materially false and misleading public statements [2] Group 2: Next Steps for Investors - Investors who suffered losses during the specified timeframe have until August 29, 2025, to request appointment as lead plaintiff, although participation in any recovery does not require this [3] - Class members may be entitled to compensation without any out-of-pocket costs or fees [3] Group 3: Firm Background - Levi & Korsinsky, LLP has a strong track record in securities litigation, having secured hundreds of millions for shareholders over the past 20 years [4] - The firm has been recognized in ISS Securities Class Action Services' Top 50 Report for seven consecutive years as one of the leading securities litigation firms in the U.S. [4]

Core Viewpoint - The Gross Law Firm is notifying shareholders of Petco Health and Wellness Company, Inc. regarding a class action lawsuit related to misleading statements made by the company during the class period from January 14, 2021, to June 5, 2025 [3]. Group 1: Allegations Against Petco - Allegations include that Petco's pandemic-related growth was not sustainable and that its business model focused on premium pet food was overstated [3]. - The strength of Petco's differentiated product strategy was claimed to be exaggerated, and the company downplayed the severity of issues affecting its business [3]. - Defendants allegedly overstated Petco's ability to achieve sustainable, profitable growth, leading to materially false and misleading public statements [3]. Group 2: Class Action Details - The deadline for shareholders to register for the class action is August 29, 2025, and participation does not incur any cost or obligation [4]. - Shareholders who register will receive updates through a portfolio monitoring software regarding the status of the case [4]. - The Gross Law Firm aims to protect investors' rights and seeks recovery for losses incurred due to misleading statements by the company [5].

Group 1 - Petco will release its financial results for the second quarter of fiscal 2025 after market close on August 28, 2025 [1] - A conference call to discuss the results will be held at 4:30 p.m. Eastern time on the same day [1] - A live webcast of the conference call will be available on the company's Investor Relations page, with a replay accessible approximately two hours after the call [2] Group 2 - Petco has been serving pet owners for over 60 years, providing a wide range of products and services for pets [3] - The company operates more than 1,500 stores across the U.S., Mexico, and Puerto Rico, offering exclusive pet care products and expertise [3] - Petco Love, founded in 1999, has supported thousands of local animal welfare groups and helped find homes for approximately 7 million animals through in-store adoption events [3]

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Petco Health and Wellness Company, Inc. due to allegations of misleading statements and failure to disclose critical business issues, with a deadline for investors to seek lead plaintiff status in a federal securities class action by August 29, 2025 [2][4]. Group 1: Legal Investigation and Claims - The law firm is encouraging investors who suffered losses exceeding $75,000 in Petco between January 14, 2021, and June 5, 2025, to discuss their legal rights [1]. - The firm has a history of recovering hundreds of millions of dollars for investors since its founding in 1995 [3]. - The complaint alleges that Petco and its executives violated federal securities laws by making false statements and failing to disclose the unsustainability of its pandemic-related business model [4]. Group 2: Financial Performance and Market Reaction - On June 5, 2025, Petco reported net sales of $1.5 billion for the first quarter of 2025, reflecting a 2.3% year-over-year decline [5]. - Following the financial results announcement, Petco's stock price dropped by $0.85 per share, or 23.34%, closing at $2.78 per share on June 6, 2025 [5]. Group 3: Class Action Details - The lead plaintiff in a class action is the investor with the largest financial interest who directs the litigation on behalf of the class [6]. - Any member of the putative class can move the court to serve as lead plaintiff or remain an absent class member without affecting their ability to share in any recovery [6]. Group 4: Call for Information - The firm is also seeking information regarding Petco's conduct from whistleblowers, former employees, shareholders, and others [7].

Core Viewpoint - Petco Health and Wellness Company, Inc. is facing a class action securities lawsuit due to alleged securities fraud that affected investors between January 14, 2021, and June 5, 2025 [1] Group 1: Lawsuit Details - The lawsuit claims that Petco's pandemic-related growth was not sustainable and that its business model, which focuses on premium pet food, was overstated [2] - Defendants allegedly downplayed the severity of issues affecting Petco's business and the necessary changes to address these issues, leading to an overstatement of the company's ability to achieve sustainable growth [2] - Public statements made by the defendants were claimed to be materially false and misleading throughout the relevant period [2] Group 2: Next Steps for Investors - Investors who suffered losses during the specified timeframe have until August 29, 2025, to request appointment as lead plaintiff, although participation in any recovery does not require this [3] - Class members may be entitled to compensation without any out-of-pocket costs or fees [3] Group 3: Firm Background - Levi & Korsinsky, LLP has a history of securing significant settlements for shareholders and has been recognized as a top securities litigation firm in the United States [4]

Core Viewpoint - A class action lawsuit has been filed against Petco Health and Wellness Company, Inc. for alleged violations of securities laws, specifically regarding misleading statements made by the company during the class period from January 14, 2021, to June 5, 2025 [1][2]. Group 1: Lawsuit Details - The lawsuit claims that Petco overstated the impact of its differentiated products and downplayed challenges that negatively affected sales [2]. - The company is accused of misrepresenting its ability to achieve sustainable growth, leading to materially incorrect and misleading statements throughout the class period [2]. Group 2: Law Firm Information - DJS Law Group specializes in securities class actions and corporate governance litigation, focusing on enhancing investor returns through balanced counseling and aggressive advocacy [3]. - The firm represents some of the largest hedge funds and alternative asset managers, indicating a strong background in handling valuable litigation claims [3].

Core Insights - Petco Health and Wellness reported a 2.3% year-over-year decline in net sales for Q1 2025, with comparable sales down 1.3%, but gross margin improved by 30 basis points to 38.2% [1] - Adjusted EBITDA increased by $13.8 million to $89.4 million, representing 6% of sales, indicating profitability improvements despite sales challenges [1] Sales and Margin Performance - The store count reached 1,393 after 30 net closures over the last six quarters, with gross margin improvement driven by average unit cost discipline and markdown optimization [2] - SG&A discipline resulted in over 180 basis points of expense leverage, approximately 60 basis points when excluding last year's disposition costs, reflecting operational efficiency amid weak demand [2][3] Strategic Initiatives - Petco is implementing targeted resets in pet consumables, increasing shelf capacity in dog food by over 10% to address out-of-stocks and labor inefficiencies [4] - The merchandising reset aims to enhance customer satisfaction and improve in-stock availability, directly addressing lost sales drivers [5] Cost Management and Profitability - Management emphasizes that cost containment is a permanent strategy, focusing on leveraging SG&A as sales recover rather than relying on temporary expense reductions [6][8] - The goal is to manage SG&A effectively to support operating margin expansion as sales grow, rather than solely focusing on cost-cutting [7] Future Outlook - For full-year 2025, Petco expects net sales to decline in the low single digits, with adjusted EBITDA projected between $375 million and $390 million, and 20-30 net store closures [9] - Q2 FY2025 adjusted EBITDA is anticipated to be $92 million to $94 million, reflecting an approximate 11% increase at the midpoint [9]

Core Insights - Petco Health and Wellness Company reported a quarterly loss of four cents per share, aligning with analyst expectations [1] - Quarterly revenue was $1.49 billion, falling short of the $1.5 billion estimate and down from $1.53 billion in the same quarter last year [1] - The CEO highlighted the company's performance as a reflection of the team's execution and the resilience of the category [2] Financial Performance - Net sales of $1.5 billion represented a 2.3% decrease year-over-year, consistent with the company's first quarter outlook [4] - Comparable sales decreased by 1.3% year-over-year [4] - Gross profit margin improved by approximately 30 basis points to 38.2% as a percentage of net sales [4] Market Reaction - Following the earnings report, Petco's stock price dropped by 10.77%, trading at $3.23 during extended hours [3]

Group 1: Momentum Investing Overview - Momentum investing contrasts with the traditional "buy low and sell high" strategy, focusing instead on "buying high and selling higher" to capitalize on fast-moving stocks [1] - Identifying the right entry point for trending stocks can be challenging, as they may lose momentum if future growth does not justify their inflated valuations [1] Group 2: Investment Strategy - Investing in bargain stocks that have recently shown price momentum may be a safer approach, utilizing tools like the Zacks Momentum Style Score to identify promising candidates [2] - The 'Fast-Paced Momentum at a Bargain' screen is effective in finding fast-moving stocks that remain attractively priced [2] Group 3: Petco Health & Wellness (WOOF) Analysis - Petco Health & Wellness (WOOF) has shown a price increase of 4.9% over the past four weeks, indicating growing investor interest [3] - WOOF has gained 2.2% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - The stock has a beta of 1.74, suggesting it moves 74% more than the market in either direction, indicating fast-paced momentum [4] Group 4: Valuation and Earnings Estimates - WOOF has a Momentum Score of B, suggesting it is an opportune time to invest in the stock [5] - The stock has earned a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [6] - WOOF is trading at a Price-to-Sales ratio of 0.17, indicating it is relatively cheap at 17 cents for each dollar of sales, providing room for growth [6] Group 5: Additional Investment Opportunities - Besides WOOF, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [7] - Zacks offers over 45 Premium Screens tailored to different investing styles, aiding in the identification of potential winning stocks [8]