Thursday, May 26, 2005

Petco on-leash

Petco got beat up at the dog park and ran, tail between its legs. Earnings, a lawsuit, a potential stock market delisting, and then blaming the economy to top it off. All in one day? Reminds me of the bumper sticker "My Dog is Smarter than Your Honor Student." But don't forget what loyal dogs do. Petco will bounce back.

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At 9:31 PM, Anonymous Anonymous said...

I do believe that if the dog was going to bounce back, he would have done it by now. Instead, he's running with his tail between his legs. Stocks are dropping, service is suffering and the knowledge of in store employees gets smaller every day. They need to concentrate on online sales and close all stores that aren't making a profit ASAP and not drag out the agony.

At 12:56 AM, Blogger Michael Dillon said...

Good points. I'm not a stock price junkie, but those 52-week lows can't be good except to contrarians.

I have not heard Petco breakout online sales; that would be interesting info. The much smaller PetMed Express and even the newly public MWI Vet Supply recently announced fairly significant year over year e-commerce increases.

Regarding employee knowledge, I only know the one Petco I visit regularly so can't speak to that on a larger scale (I haven't noticed any degeneration in service or knowledge).

Hopefully the August 25 earnings call will shed some light on this last quarter's decline. But the biggest question still remains: do dogs actually bounce? Let me test...OW! Nope, they sure don't.

At 8:08 PM, Anonymous Anonymous said...

And, in the meantime, their stocks have dropped even lower, their website has been redesigned and some stores are closing.......


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