Petco Write-Off Leads to Loss

Petco(PETC Quote) posted a fourth-quarter loss of $18.2 million, or 6 cents a share, compared with a year-ago profit of $8.5 million, or 21 cents a share. This year's results include a $37 million loss related to the write-off of the company's terminated investment in a Canadian pet-supplies chain, as well as $2.5 million in stock-based compensation expenses related to its IPO.

Excluding the one-time costs, the pet supply store earned $15.7 million, or 27 cents a share, up from $9.7 million, or 17 cents a share, in the year-ago quarter, due primarily to improved gross margins and higher same-store sales. ...