Petco Health & Wellness posted a wider-than-expected loss in same-store sales for the first quarter as its turnaround plan continues to ramp up.

The pet-products retailer said Thursday same-store sales declined 1.3%, compared with a 0.6% decline estimated by Wall Street. The drop was driven by fewer transactions despite Petco’s efforts to boost foot traffic in its stores, management said.

The miss comes as Chief Executive Joel Anderson, who started last summer, aims to steer the company back to profitability. He wants to improve merchandise and capitalize on growth opportunities like in-store grooming and veterinarian services. Anderson told analysts on a call the fruits of his labor aren’t yet visible in Petco’s finances.

“From your guys’ perspective on the outside, you would say we haven’t even started. You haven’t seen it,” he said. “But I’ll tell you, inside, we’re already beginning to identify several levers of growth.”

Petco shares slid 8.8% in postmarket trading.

The San Diego-based company posted a loss of $11.7 million, or 4 cents a share, for the 13 weeks ended in May, compared with a loss of $46.5 million, or 17 cents a share, a year earlier.

Revenue fell 2.3% to $1.49 billion, roughly in line with analysts’ expectations of $1.50 billion.

Petco also said its direct exposure to tariffs is slightly higher than previously indicated. It sources 7% of its Petco-branded inventory from China, Canada and Mexico, above the 5% it said in March.

The company still thinks it can deliver on its full-year guidance, which it released before tariffs were announced. That will only happen if tariffs don’t increase, the company said.

In its second quarter, Petco expects a low-single-digit decline in sales. Wall Street was projecting a 1.6% decrease.