Question-and-Answer SessionKatharine McShaneGoldman Sachs Group, Inc., Research Division I almost wonder if I have to be up here, like you could just launch into all your phases and initiatives. But obviously, this has been a big year of transformation for Petco so far. And you have this multiphased approach and focused on 3 stages. And the first one is the strengthening of the retail fundamentals. So I wondered if we could maybe just level set in terms of what you've been able to accomplish? How do you thi ...

Petco Health and Wellness Company (WOOF) FY 2025 Conference September 04, 2025 01:50 PM ET Speaker0Hi, hi everybody. Thank you for attending one of our last fireside chats of the conference. It's our pleasure to introduce you to Petco Health and Wellness Company Inc. Today we have with us Joel Anderson, Chief Executive Officer, and we also have with us Sabrina Simmons, Chief Financial Officer. Thank you both for joining us today. We're excited to have you. You do have a lot going on.Speaker2Yes, we do.Speak ...

Core Insights - Petco Health and Wellness raised its full-year guidance for a key profitability metric, leading to a significant stock price increase of almost 24% following the release of its second-quarter earnings [1] Financial Performance - Petco's net sales for the second quarter declined over 2% year-over-year to $1.5 billion, which was anticipated by management and slightly exceeded analyst predictions of $1.49 billion [2] - Comparable sales fell by 1.4% for the quarter, but the company reported a GAAP net profit of nearly $14 million, or $0.05 per share, a turnaround from a loss of nearly $25 million in the same quarter of 2024 [3] - Analysts had lower expectations for profitability, with an average estimate of only $0.01 per share [3] Strategic Outlook - CEO Joel Anderson stated that the first half of the year established a solid foundation for the company's transformation, focusing on strengthening its economic model and improving retail operating fundamentals [4] - Petco raised its guidance for non-GAAP EBITDA for the full year 2025 to a range of $385 million to $395 million, despite anticipating net sales to decline in the low-single-digit percentages compared to 2024 [4]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended August 2, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39878 Petco Health and Wellness Company, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 81-1005932 (State o ...

Petco Health and Wellness Company (WOOF) Q2 2026 Earnings Call August 28, 2025 04:30 PM ET Company ParticipantsTina Romani - Head of Investor RelationsJoel Anderson - CEO & DirectorSabrina Simmons - CFOSteven Zaccone - Director & Equity Research - Hardlines RetailSteven Forbes - Senior MD - Equity ResearchKaumil Gajrawala - Managing DirectorKendall Toscano - Equity Research AssociateSimeon Gutman - Managing DirectorConference Call ParticipantsMichael Lasser - Equity Research Analyst - Hardlines, Broadlines ...

Financial Data and Key Metrics Changes - In Q2 2025, net sales decreased by 2.3% with comparable sales down 1.4% due to 25 net store closures in 2024 and an additional 10 closures year to date, bringing the U.S. store count to 1,388 [22][24] - Gross margin expanded by over 120 basis points to 39.3%, driven by a disciplined approach to average unit cost and average unit retail [24][26] - Operating profit increased by $41 million year over year to $43 million, with adjusted EBITDA rising by $30 million to $114 million, expanding nearly 220 basis points to 7.6% as a percentage of sales [26][28] Business Line Data and Key Metrics Changes - The company is focusing on improving store performance, which has shown positive results, while e-commerce has been deprioritized temporarily to enhance profitability [16][60] - The relaunch of the loyalty program is aimed at strengthening long-term customer relationships, with personalized rewards being a key feature [14][15] Market Data and Key Metrics Changes - The pet industry is currently experiencing flat growth, but the company is maintaining its market share while improving profitability [78] - Customer sentiment has improved, as indicated by sequential increases in the Net Promoter Score (NPS) since the end of the previous year [9][66] Company Strategy and Development Direction - The company is in Phase two of its transformation, focusing on operational improvements and preparing for Phase three, which aims for a return to profitable sales growth [6][18] - Key pillars for future growth include enhancing store experiences, delivering services at scale, merchandising differentiation, and winning with omnichannel strategies [55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver improvements and raised the adjusted EBITDA outlook for 2025 to between $385 million and $395 million, reflecting a 16% increase at the midpoint [28] - The company anticipates that the impacts of tariffs will become more significant in the second half of the year, which may affect gross margins [42][90] Other Important Information - Free cash flow for the quarter was over $50 million, with a cash balance of $190 million and total liquidity of $684 million [27] - The company is committed to continuous improvement in inventory management, achieving a 9.5% reduction in ending inventory while maintaining higher in-stock levels for customers [27][63] Q&A Session Summary Question: When can the firm be held accountable for generating a positive comp? - Management indicated that results for a positive comp are expected to show up in 2026, as the third quarter is the hardest compare of the year [33] Question: Were gross margin gains primarily from online promotions? - Management clarified that the focus has been on improving store performance, which represents the majority of sales, while e-commerce has been more focused on profitability [34][36] Question: How did gross margin perform relative to expectations? - Management noted that gross margin expansion was a significant focus, with minimal tariff impact in Q2, but expected tariffs to have a more meaningful impact in the back half of the year [40][42] Question: What is the status of e-commerce and inventory projects? - Management stated that e-commerce improvements are ongoing, with a new leader making an impact, while inventory management has been successful with a focus on continuous improvement [60][63] Question: What are the biggest remaining execution gaps? - Management emphasized that the focus is now on the progress made and the confidence to invest back into the business, rather than identifying gaps [72] Question: What is the outlook for the fourth quarter adjusted EBITDA? - Management indicated that tariffs will have the most significant negative impact in Q4, but strong performance in the first half allows for selective investments in the second half [90]

Core Viewpoint - A class action lawsuit has been filed against Petco Health and Wellness Company, Inc. for allegedly making false or misleading statements regarding its business operations and prospects during the pandemic period [2][4]. Group 1: Lawsuit Details - The class action lawsuit is filed on behalf of all individuals and entities who purchased Petco securities between January 14, 2021, and June 5, 2025 [2]. - Investors have until August 29, 2025, to apply to the Court to be appointed as lead plaintiff in the lawsuit [2]. Group 2: Allegations Against Petco - The lawsuit alleges that Petco's pandemic-related growth was unsustainable and that its business model focused on premium pet food was flawed [4]. - It is claimed that the strength of Petco's differentiated product strategy was overstated, and the company downplayed the severity of operational issues [4]. - The defendants are accused of overstating Petco's ability to achieve sustainable and profitable growth [4].

g petco Second Quarter 2025 Earnings Call Meaningfully increased profitability as efforts to strengthen retail fundamentals continue to take hold Focused on core tenets of economic model to expand gross margin, leverage SG&A and prioritize ROIC August 28, 2025 Safe Harbor and Non-GAAP Measures This Presentation cortains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1935 as sortained in Section 274 of the Secur as amended, and Section 21E of the Securities ...

Exhibit 99.1 Petco Reports Second Quarter 2025 Financial Results Raises Fiscal 2025 Earnings Outlook* San Diego, August 28, 2025 – Petco (Nasdaq: WOOF) today announced its second quarter 2025 financial results. Q2 2025 Overview The company maintained its full year net sales outlook and raised its full year 2025 earnings outlook. In addition, the company provided its outlook for the third quarter of 2025. The Company's third quarter and full year 2025 outlook assumes that the tariffs on imports into the U.S. ...

Core Viewpoint - Berger Montague is investigating potential securities fraud claims against Petco Health and Wellness Company, following a federal securities class action lawsuit related to misleading statements about its pandemic-driven growth and product strategy [1][2]. Summary by Relevant Sections Allegations of Misleading Statements - The complaint alleges that Petco made false and misleading statements regarding the sustainability of its pandemic-driven growth and premium product strategy, which led to a significant decline in its stock price, including a drop of over 20% on August 24, 2023 [2]. Impact on Stock Price and Investor Confidence - The lawsuit indicates that the alleged misstatements contributed to substantial losses for Petco, particularly during the Class Period from January 14, 2021, to June 5, 2025, with continued downward revisions to earnings guidance and multiple leadership changes affecting investor confidence [2][3]. Changes in Product Strategy - Petco's efforts to adjust its product mix by introducing lower-cost pet food options contradicted prior public statements, highlighting the severity of the Company's challenges and further impacting investor sentiment [3].