Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Petco Health and Wellness Company, Inc. (WOOF)

NEW YORK, July 01, 2025 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Southern District of California on behalf of all persons or entities who purchased or otherwise acquired Petco Health and Wellness Company, Inc. (“Petco” or the “Company”) (NASDAQ: WOOF) securities between January 14, 2021 and June 5, 2025, both dates inclusive (the “Class Period”).

The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (i) Petco’s pandemic-related tailwinds were unsustainable, as was its business model of selling primarily premium and/or high-grade pet food; (ii) accordingly, the strength of Petco’s differentiated product strategy was overstated; (iii) Defendants downplayed the true scope and severity of the foregoing issues, the magnitude of changes needed to rectify those issues, and the likely negative impacts of their mitigation strategy on Petco’s comparable sales metric; (iv) accordingly, Defendants overstated Petco’s ability to deliver sustainable, profitable growth; and (v) as a result, Defendants’ public statements were materially false and misleading at all relevant times.

On August 24, 2023, Petco issued a press release announcing its financial results for the second quarter of its FY 2023. Therein, the Company negatively revised its FY 2023 adjusted EBITDA guidance to a range of $460 million to $480 million—down significantly from its prior guidance of $520 million to $540 million—and adjusted EPS guidance to a range of $0.24 to $0.30—down significantly from its prior guidance of $0.40 to $0.48. In explaining the negatively revised guidance, Company management cited a “shift in consumer spending and pressures on our discretionary business[.]”

On this news, Petco’s stock price fell $1.35 per share, or 20.64%, to close at $5.19 per share on August 24, 2023.

Investors who purchased or otherwise acquired shares of Petco should contact the Firm prior to the August 29, 2025 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.

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