Invest in Petco instead of Chewy, says Jim Cramer
“If [Chewy] aren’t turning a profit yet after all these years, I find it impossible to recommend their stock in this environment. If you want to play the humanization of pets, I’d much rather buy the
Petco is a leading pet retailer that offers a wide range of pet products and services, including pet food, toys, grooming, and veterinary care. The company recently went public, and many investors are wondering whether it would be a good investment. In this article, we will take a closer look at Petco's financials and evaluate its investment potential.
Revenue and Earnings Growth:
Petco reported net sales of $4.91 billion for the fiscal year 2020, an increase of 11% compared to the previous year. The company's net income for the year was $29.2 million, which is a significant improvement from the $40.1 million net loss it reported in 2019. In the first quarter of 2021, Petco's net sales increased by 27.4% compared to the same period in the previous year.
Profit Margins:
Petco's profit margins have improved in recent years, with the company reporting a gross profit margin of 34.2% for the fiscal year 2020, compared to 32.9% in 2019. However, the company's operating margin is still negative, although it has improved from -2.4% in 2019 to -0.1% in 2020.
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