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Petco ( WOOF ) shares soared Thursday morning as the pet retailer outlined a better-than-expected adjusted earnings forecast for fiscal 2025.

For the full year, Petco expects sales to decline by low single digits, while adjusted EBITDA is seen rising to between $375 million and $390 million from $336.5 million in 2024. Analysts expected $371.6 million, according to estimates compiled by Visible Alpha.

The retailer also announced a new collaboration Thursday, with its pet supplies products now available through the retail section of Uber ( UBER ) Eats.

Petco shares surged 30% shortly after the market opened Thursday. They had entered the day down just over 35% since the start of 2025.

Petco's Business 'Needed Overhauling,' CEO Says

The retailer is planning to boost profits by cutting costs and operating more efficiently. CEO Joel Anderson said in Wednesday's earnings call that when he took over last summer , Petco's "foundational practices were not those of a successful consumer business and needed overhauling," according to a transcript from AlphaSense.

The average Petco customer "remains discerning," Anderson said, noting that the chain is reviewing its product portfolio, and plans to dedicate more shelf space to faster-selling brands. The retailer is also looking to improve its margins by "executing more targeted promotions," Anderson said.

The retailer reported $1.55 billion in sales for the quarter that ended Feb. 1, narrowly below estimates, while comparable store sales grew by 0.5%, below the 0.83% analyst consensus. Petco recorded a net loss of $0.05 per share, $0.02 wider than expectations.

Petco's report follows that of online pet retail rival Chewy ( CHWY ), whose results topped estimates Wednesday.

UPDATE—This article has been updated with the latest share price information and Petco's partnership with Uber.

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