● • Petco cautions that the foregoing list of risks, uncertainties and other factors's not complete, and forward-looking statements speak only as of the date they are made. Pe publicly any such forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by applicable/aw, regulation o authority. SAFE HARBOR AND NON-GAAP MEASURES 2 Second Quarter KEY TAKEAWAYS ► Sales and comp growth up 3% y/y ► 19th consecutive quarter of comp sales growth and 13th ...

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 April 29, 2023 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 ...

Financial Data and Key Metrics Changes - In Q1 2023, net revenue was $1.56 billion, an increase of 5% year-over-year, with comparable sales also up 5% [21][40] - Adjusted EBITDA was $111 million, down 6.9% from the prior year, with an adjusted EBITDA margin of 7.1%, down 90 basis points year-over-year [42] - Q1 gross profit was $604.5 million, with a gross margin of 38.9%, down 230 basis points year-over-year [18][42] - Adjusted EPS was $0.06, a decrease of $0.08 from the prior year, primarily due to a $0.05 year-over-year increase in interest expense [42] Business Line Data and Key Metrics Changes - Total services revenue grew double digits, driven by strong performance in veterinary and grooming services [40] - Consumables sales increased by 11% year-over-year, while supplies and companion animals were down 8% in Q1 [18][22] - The grooming business generated record sales, and the veterinary business saw a 20% increase in pet appointments year-over-year [9][13] Market Data and Key Metrics Changes - The digital business experienced double-digit sales growth, with significant growth in same-day delivery orders, which more than doubled year-over-year [27] - The company reported a nearly 800 basis point improvement in partner retention year-over-year for full-time partners in pet care centers [28] Company Strategy and Development Direction - The company is focused on executing strategic priorities, enhancing operational efficiencies, and driving productivity [6][7] - Petco aims to expand its veterinary services, with plans to add 50 to 55 new hospitals in 2023 [44] - The integrated service model, including veterinary offerings, is seen as a key growth catalyst [32] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious consumer sentiment beginning in the second half of Q1, influenced by banking uncertainty and lower tax refunds [45][131] - The company reaffirmed its full-year guidance, expecting revenue between $6.150 billion and $6.275 billion [44] - Management expressed confidence in the long-term growth potential of the pet care market, driven by trends of humanization and premiumization [32] Other Important Information - The company reported a 50% year-over-year increase in recurring customer revenue, with the Vital Care membership program showing strong growth [29][31] - Petco's liquidity position remains strong, ending the quarter with $593 million, including $149 million in cash [43] Q&A Session Summary Question: Clarification on Q2 EBITDA - Management clarified that Q2 EBITDA is expected to be flat to slightly up relative to Q1 [50] Question: Trends in Consumables and Supplies - Management indicated that consumables remain strong, while supplies are weaker, and they are working with vendors to address cost issues [51][62] Question: Recurring Revenue Trends - Management noted that recurring revenue as a percentage of total sales has been growing, driven by repeat delivery and the Vital Care program [68] Question: Traffic vs. Ticket in Q1 - Management reported positive trends in veterinary and grooming services, contributing to overall traffic [58][74] Question: Impact of New Vital Care Customers - Management stated that while there is some margin dilution from new Vital Care customers, it is not significant compared to the overall customer base [118]

Market Overview - The U.S. pet care industry represented a total addressable market of approximately $133 billion in 2022, driven by trends in pet humanization and premiumization[36]. Company Operations - As of January 28, 2023, the company operated 1,500 pet care centers across the U.S., Mexico, and Puerto Rico, serving over 25 million active customers[29]. - The company launched its first Neighborhood Farm & Pet Supply pet care centers in 2022, with 5 locations across Texas, North Carolina, and Kentucky, targeting rural markets[30]. - The company operates approximately 1,200 Vetco mobile clinics weekly and has 247 full-service veterinary hospitals as of January 28, 2023, expanding its health services[32]. - The company operates 1,430 pet care centers in the U.S. and Puerto Rico, offering services like grooming, training, and veterinary care, with 74% of digital orders fulfilled by these centers in fiscal 2022[43][60]. Customer Engagement and Loyalty - The Vital Care membership program was unified in January 2023, consolidating over 25 million active customers into two tiers, enhancing customer engagement and loyalty[34]. - The company has implemented advanced analytics and data science to enhance customer insights and drive retention through precision marketing[49][52]. Product and Service Strategy - The company’s product assortment focuses on premium health and wellness products, addressing ongoing trends in the pet care market[31]. - Approximately 27% of product sales in fiscal 2022 came from owned brands, enhancing the merchandise mix and customer retention[48]. - The company aims to capture market share in veterinary care, e-commerce, and services, positioning itself as a comprehensive pet care provider[37]. Digital Transformation - The company’s transformation over the past five years has included significant operational changes and an acceleration of digital capabilities, enhancing customer experience[41]. - The company has rebuilt its digital experience, relaunching its e-commerce platform and app, focusing on speed, navigation, and personalization to drive traffic and engagement[42]. Partnerships and Community Support - The company has implemented partnerships with Lowe's and Canadian Tire to develop innovative store-in-store concepts, enhancing product reach[29]. - The company has invested over $2 million in financial support for nearly 2,000 partners through the Petco Partner Assistance Fund[57]. - Petco Love has invested more than $346 million in various animal welfare initiatives since its founding, helping nearly 7 million pets find new homes[64]. - The Vaccinated and Loved initiative has distributed over 1.3 million free pet vaccines, with a commitment to distribute another million[66]. Workforce Development - In fiscal 2022, the company provided over 400,000 hours of training to its pet care center partners, with nearly 50% of open management positions filled by internal promotions[59]. - The company has established seven Partner Resource Groups to foster diversity and inclusion within its workforce[56]. Financial Overview - As of January 28, 2023, the company had $1,670.3 million outstanding under the First Lien Term Loan, with no amounts outstanding under the ABL Revolving Credit Facility[355]. - A 100 basis point increase in variable rates on the First Lien Term Loan and ABL Revolving Credit Facility would increase annual cash interest by approximately $16.9 million[355]. - The company maintains cash and cash equivalents at major financial institutions in the U.S., with current deposits likely exceeding insured limits[357]. - The company believes that a 10% increase or decrease in the relative value of the U.S. dollar compared to other currencies would not materially affect its operating results[358].

Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) Q4 2022 Earnings Conference Call March 22, 2023 8:00 AM ET Company Participants Cathy Yao - Vice President, Investor Relations Ron Coughlin - Chief Executive Officer Brian LaRose - Chief Financial Officer Conference Call Participants Kate McShane - Goldman Sachs Oliver Wintermantel - Evercore ISI Elizabeth Suzuki - Bank of America Corey Grady - Jefferies Anna Andreeva - Needham & Company Simeon Gutman - Morgan Stanley Steven Forbes - Guggenheim Securitie ...

| --- | --- | |-------|-------| | | | | PETCO | | 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 statements that are ...

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. 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 October 29, 2022 (Exact Name of Registrant as Specified in its Charter) Delaware 81-1005932 (State ...

| --- | --- | |------------------------------|-------| | | | | November 30, 2022 EARNINGS | | 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 ...

Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) Q3 2022 Earnings Conference Call November 30, 2022 8:30 AM ET Company Participants Benjamin Thiele-Long - Director, Executive and Business Communications Ron Coughlin - Chief Executive Officer Brian LaRose - Chief Financial Officer Conference Call Participants Liz Suzuki - Bank of America Simeon Gutman - Morgan Stanley Peter Benedict - Baird Oliver Wintermantel - Evercore ISI Michael Lasser - UBS Chris Bottiglieri - BNP Paribas Steven Zaccone - Citi Seth ...

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 July 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an ...