The company now anticipates sales growth of 2.5% to 3.5%, a significant reduction from its previous forecast of 4% to 6%. Same-store sales, which analysts hoped would see a slight uptick, are now projected to remain flat or decline by 1%. Bottom-line expectations have also been adjusted, with earnings now pegged at $1.78 to $1.88 per share, missing the $2.03 per share projection previously held by market observers.

Chief Executive Hal Lawton acknowledged the disappointing results, citing broad pressure across the company's core markets. In response, Lawton is prioritizing the companion animal segment and a tighter allocation of capital. Despite the profit drop to $360.7 million—down from $430 million in the same period last year—investors reacted positively to the news of the strategic shift, sending shares up 3.3% in premarket trading to $30.32.