Petco Reports Modest Q3 Growth Amid Strategic Changes

Petco Reports Modest Q3 Growth Amid Strategic Changes

Petco Health And Wellness Company, Inc. (WOOF) has disclosed its third quarter earnings, illustrating a slight revenue increase despite facing a net loss. The company reported revenue of $1.51 billion, marking a 1.2% rise from the previous year. Although Petco experienced a net loss of $16.7 million, this represents an improvement from a significant loss of $1.2 billion the previous year, largely attributed to a considerable goodwill impairment charge.

Key Financial Highlights

Among the key financial highlights, Petco showed a 4.7% increase in gross profit, totaling $575.8 million, as well as an adjusted EBITDA of $81.2 million, up from $72.2 million in the prior year. The growth was primarily driven by the consumables and services sectors, effectively balancing out a decline in the supplies and companion animal segment. CEO Joel Anderson emphasized these results underline Petco’s commitment to enhancing retail fundamentals and achieving profitable growth.

Looking Ahead

As Petco looks towards the future, it holds a positive outlook for the fiscal fourth quarter of 2024, projecting revenues around $1.55 billion and an adjusted EBITDA between $90 million and $95 million. The company is focused on improving profitability and cash flow, aiming for a strong end to the year as part of its ongoing strategic transformation efforts.