(Bloomberg) -- Petco Health & Wellness Co. named Glenn Murphy as executive chairman to lead the search for a chief executive officer.

Murphy, the CEO of investment firm FIS Holdings, assumes the role immediately, the company said in a statement. Michael Mohan was named interim chief in March after Ron Coughlin stepped down following several quarters of underperformance.

Petco withheld guidance for 2024 given the management change, and its first-quarter outlook missed estimates. At the time, Mohan said the company had not adapted to consumer preferences, as its shoppers traded down to value products and reined in discretionary spending. 

“There are many tangible opportunities to improve near-term operating and financial performance and deliver attractive long-term growth,” Murphy said in the release.

Chief Financial Officer Brian LaRose has said several options were being considered for the company’s return to profitability as part of the leadership transition. Petco should still save $40 million in the first year of its cost-savings plan that runs through 2025, though that could be offset by additional hiring to enhance its in-store experience, he added. 

Petco’s first-quarter results are due May 22 before the opening bell. The average analyst estimate calls for its sales to fall 2.9% in what would be its largest decline in over two years.

The company’s ability to differentiate itself from its peers, particularly as it competes with mass merchants with its expanded value offerings, will be key to its growth, Bloomberg Intelligence said. If its rewards program helps increase basket size and shopping frequency, the company could see at least $2 billion more in sales and $300 million in earnings before interest, taxes, depreciation and amortization over three years.

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