(Bloomberg) -- Petco Health & Wellness Co. named Joel Anderson as its new chief executive officer on Wednesday, just one day after he left Five Below Inc. amid a forecast cut that sent its stock plunging 25%.
Five Below announced Anderson, who led the company for nearly 10 years, was stepping down on Tuesday as it cut its guidance for the second time this year. Five Below’s stock then plunged on Wednesday, losing just over a quarter of its share price.
Anderson’s move may not inspire confidence in Petco’s future, according to Bloomberg Intelligence. “Many of the afflictions at Five Below parallel those experienced by Petco in recent quarters, including merchandising mishaps that soured core customers,” BI wrote in a note after Petco’s announcement Wednesday.
“I am excited to join Petco at a pivotal time as we reposition the business for a stronger future,” Anderson said in Petco’s statement. “I see many opportunities to improve performance.”
Petco began searching for a new chief executive in March after Ron Coughlin stepped down following several quarters of underperformance.
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