Financial Results Announcement - Petco Health and Wellness Company, Inc. will release its financial results for the first quarter of fiscal 2025 after market close on June 5, 2025 [1] - A conference call to discuss the results will be held at 4:30 p.m. Eastern time on the same day [1] Webcast Information - A live webcast of the conference call will be available on the company's Investor Relations page [2] - A replay of the webcast will be accessible approximately two hours after the conference call [2] Company Overview - Petco, founded in 1965, is focused on improving the lives of pets, pet parents, and its partners [3] - The company operates over 1,500 pet care centers across the U.S., Mexico, and Puerto Rico, offering a variety of services including grooming, training, and veterinary care [3] - Petco Love, an independent nonprofit organization, collaborates with local animal welfare groups and has facilitated the adoption of nearly 7 million animals [3]

Group 1: Momentum Investing Overview - Momentum investing contrasts with the traditional "buy low and sell high" strategy, focusing instead on "buying high and selling higher" to capitalize on fast-moving stocks [1] - Identifying the right entry point for trending stocks can be challenging, as they may lose momentum if future growth does not justify their inflated valuations [1] Group 2: Investment Strategy - Investing in bargain stocks that have recently shown price momentum may be a safer approach, utilizing tools like the Zacks Momentum Style Score to identify promising candidates [2] - The 'Fast-Paced Momentum at a Bargain' screen is effective in finding fast-moving stocks that remain attractively priced [2] Group 3: Petco Health & Wellness (WOOF) Analysis - Petco Health & Wellness (WOOF) has shown a price increase of 4.9% over the past four weeks, indicating growing investor interest [3] - WOOF has gained 2.2% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - The stock has a beta of 1.74, suggesting it moves 74% more than the market in either direction, indicating fast-paced momentum [4] Group 4: Valuation and Earnings Estimates - WOOF has a Momentum Score of B, suggesting it is an opportune time to invest in the stock [5] - The stock has earned a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [6] - WOOF is trading at a Price-to-Sales ratio of 0.17, indicating it is relatively cheap at 17 cents for each dollar of sales, providing room for growth [6] Group 5: Additional Investment Opportunities - Besides WOOF, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [7] - Zacks offers over 45 Premium Screens tailored to different investing styles, aiding in the identification of potential winning stocks [8]

Core Insights - Petco Health and Wellness Company Inc's shares increased by 16.4% to $3.45 following CEO Joel Anderson's purchase of nearly 1.6 million shares, amounting to a $4.7 million investment, indicating strong leadership confidence in the company's value [1] - Despite a 31.5% increase post-earnings, the stock is down 22.3% in 2025, although it shows a 42.3% year-over-year gain, suggesting potential long-term momentum [2] - Analysts remain largely pessimistic, with nine out of twelve brokerages maintaining a "hold" or worse rating, and short interest is high at 28.28 million shares, representing 36.8% of the stock's float [2] Options Market Insights - The Schaeffer's Volatility Index (SVI) for Petco Health and Wellness stock is at 86%, placing it in the 20th percentile of its annual range, indicating that short-term options are currently attractively priced [3]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended February 1, 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) i Securities registered pursuant ...

Petco Health and Wellness Company, Inc. (NASDAQ: WOOF ) reported the company’s fiscal Q4 earnings on the 26 th of March. The pet care center operator reported results nearly in line with expectations, but with increasingI am an avid investor with a major focus on small cap companies with experience in investing in US, Canadian, and European markets. My investment philosophy to generating great returns on the stock market revolves around identifying mispriced securities by understanding the drivers behind a ...

Core Insights - Petco Health and Wellness Company, Inc. (WOOF) reported fourth-quarter fiscal 2024 results with net sales and earnings declining year-over-year, meeting revenue estimates but lagging on earnings [1][2] Financial Performance - The company posted break-even earnings per share in Q4 fiscal 2024, down from adjusted earnings of 2 cents in the same quarter last year, and below the Zacks Consensus Estimate of adjusted earnings of 2 cents [2] - Net sales were $1,552.1 million, a decrease of 7.3% year-over-year, influenced by the absence of a 53rd week in fiscal 2023; comparable sales increased by 0.5%, slightly below the expected growth of 0.9% [3] Margins and Expenses - Gross profit fell by 2.8% year-over-year to $589.3 million, while gross margin improved by 180 basis points to 38% [4] - Selling, general and administrative expenses decreased by 5.7% to $571.8 million, with these expenses as a percentage of net sales decreasing by 60 basis points to 36.8% [4] - Adjusted EBITDA was $96.1 million, down from $105.3 million in the previous year, with the adjusted EBITDA margin contracting by 10 basis points to 6.2% [5] Cash Flow and Equity - At the end of the quarter, Petco had cash and cash equivalents of $165.8 million and total stockholders' equity of $1.11 billion; operating cash flow was $177.7 million, down from $215.7 million in the prior year [6] - Free cash flow totaled $49.7 million at the end of Q4 fiscal 2024 [6] Future Outlook - For fiscal 2025, net sales are expected to decline in the low-single-digit percentage range, with adjusted EBITDA projected between $375 million and $390 million; capital expenditure is anticipated to be between $130 million and $140 million [9][10] - The company expects to close 20-30 net real estate locations during the year [10] - For Q1 fiscal 2025, net sales are also projected to decline in the low-single-digit percentage range, with adjusted EBITDA expected between $82 million and $83 million [10]

Company Overview - Proactive is a financial news publisher that provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company has a team of experienced and qualified news journalists who produce independent content [2] Market Focus - Proactive specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - The news team delivers insights across various sectors including biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Adoption - Proactive is recognized for its forward-looking approach and enthusiastic adoption of technology to enhance workflows [4] - The company utilizes automation and software tools, including generative AI, while ensuring that all content is edited and authored by humans [5]

Financial Data and Key Metrics Changes - In Q4 2024, the company reported revenue of $1,550,000,000, which was in line with prior outlook, and adjusted EBITDA of $96,100,000, exceeding expectations [9][28] - Fourth quarter gross profit decreased about 3% to $589,000,000, primarily due to the loss of the fifty-third week in 2024, while gross margin increased by 180 basis points to 38% [28] - Total SG&A was $571,900,000, or 36.8% of net sales, an increase of approximately 60 basis points year-over-year [29] - The company achieved positive free cash flow of $50,000,000 and ended the year with a cash balance of $182,000,000 [29] Business Line Data and Key Metrics Changes - Services are identified as the fastest-growing area within the pet category, with the company holding an established leadership position [9] - The company is focusing on improving its existing fleet of vet hospitals to drive services growth and improve margins with minimal capital [25] Market Data and Key Metrics Changes - The pet category is projected to reach $200 billion in the next five years, with ongoing humanization of pets serving as a significant tailwind for the company [8] - The company closed 25 net locations in 2024 and expects to close between 20 to 30 net locations in 2025 [31] Company Strategy and Development Direction - The company is transitioning from a singular focus on health and wellness to serving all pets and pet parents, aiming to regain market share in a fragmented market [5] - The strategy is divided into three phases: stabilizing profitability, strengthening retail fundamentals, and preparing for revenue growth [10][19] - The leadership team is focused on improving gross margin, leveraging SG&A, and enhancing return on invested capital [24][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to return to long-term profitable growth, emphasizing the importance of operational improvements and cost control [22][33] - The outlook for 2025 anticipates overall net sales to decline low single digits compared to the previous year, with adjusted EBITDA expected to be between $375,000,000 and $390,000,000 [32] Other Important Information - The company is committed to improving its economic model and operational performance, with a focus on gross margin expansion and disciplined capital allocation [24][26] - Management highlighted the importance of customer satisfaction and maintaining a competitive pricing strategy while avoiding low-margin sales [16][60] Q&A Session Summary Question: What infrastructure investments are needed for Phase three? - Management indicated that no significant infrastructure investments are required, focusing instead on cost control and improved EBITDA [37] Question: What are the low-hanging fruit for EBITDA improvement? - Management emphasized the importance of working every lever of the business to improve profitability, particularly in gross margin expansion and SG&A leverage [46][47] Question: How will the company regain market share? - Management acknowledged the need to strengthen profitability and cash flow before focusing on growth, with plans to identify growth levers in Phase three [56][57] Question: How will SG&A be managed with expected sales declines? - Management assured that customer needs remain a priority, and SG&A management will focus on leveraging existing resources without harming customer experience [59][60] Question: What is the outlook for inflation and promotions? - Management noted that the promotional environment remains steady year-over-year, with a focus on disciplined promotional strategies that enhance customer value [113][116]

PETCO FOURTH QUARTER AND FULL YEAR 2024 EARNINGS CALL March 26, 2025 SAFE HARBOR AND NON-GAAP MEASURES This Presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, concerning expectations, beliefs, plans, objectives, goals, strategies, future events or performance and underlying assumptions and other s ...

Financial Data and Key Metrics Changes - In Q4 2024, the company reported revenue of $1.55 billion, aligning with prior outlook, and adjusted EBITDA of $96.1 million, exceeding expectations [13][44] - Gross profit decreased by approximately 3% to $589 million, primarily due to the loss of the fifty-third week in 2024, while gross margin increased by 180 basis points to 38% [43][44] - Total SG&A expenses were $571.9 million, or 36.8% of net sales, an increase of about 60 basis points year-over-year [44] Business Line Data and Key Metrics Changes - The services segment is identified as the fastest-growing area within the pet category, with the company holding an established leadership position [11] - The company is focusing on optimizing existing vet hospitals to drive services growth and improve margins with minimal capital investment [39] Market Data and Key Metrics Changes - The pet category is projected to reach $200 billion in the next five years, driven by the ongoing humanization of pets [11] - The company closed 25 net locations in 2024 and anticipates closing an additional 20 to 30 locations in 2025 [49][122] Company Strategy and Development Direction - The company is implementing a phased approach to restore profitability, focusing on improving the operating model, enhancing retail fundamentals, and optimizing product assortment [14][20] - The leadership team is committed to driving gross margin improvement and leveraging SG&A to enhance the economic model [41][42] - Future growth initiatives will include enhancing omnichannel capabilities and investing in services opportunities [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to return to long-term profitable growth, emphasizing the importance of operational improvements and cost control [32][52] - The outlook for 2025 anticipates overall net sales to decline low single digits compared to the previous year, with adjusted EBITDA expected between $375 and $390 million [48][49] Other Important Information - The company aims to achieve a debt-to-EBITDA leverage ratio below two times, focusing on profitability improvement [45] - Management is closely monitoring potential tariff impacts, particularly on inventory purchases from China, Canada, and Mexico, which represent only about 5% of total merchandise costs [46][47] Q&A Session Summary Question: What infrastructure investments are needed for phase three? - Management indicated that no significant infrastructure investments are required, focusing instead on improving EBITDA through disciplined operations [59][60] Question: What are the low-hanging fruit for EBITDA improvement? - Management highlighted the importance of gross margin expansion and leveraging SG&A as key areas for improvement [67][70] Question: How does the company plan to manage SG&A amid declining sales? - Management emphasized that SG&A leverage is about efficiency and effectiveness, ensuring customer needs are met without compromising service [86][87] Question: What is the company's approach to pricing and promotions? - Management stated that they are focused on rational pricing strategies and avoiding excessive promotional stacking to enhance profitability [151][153] Question: How does the company view the competitive landscape and market share? - Management acknowledged the need to sacrifice some sales for improved profitability but expressed confidence in regaining market share through operational improvements [80][84]