Petco Health and Wellness (NASDAQ: WOOF) shareholders saw big declines on Wednesday. The pet supply retailer's shares were down more than 20% by noon, compared to a 0.9% decline in the S&P 500. This slump put Petco's stock in negative territory for 2023, down roughly 16%.

Wednesday's drop was sparked by the retailer's first-quarter earnings report.

Petco managed to continue boosting sales in the selling period that ran through late March. However, there were signs of more weakness in the industry. Comparable-store sales were up 5%, which was on pace with the prior quarter's increase. But pet owners are focusing their spending on essentials rather than on discretionary products.

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Source Fool.com