Petco Health and Wellness Company, Inc. (WOOF) and Nationwide, a prominent pet insurance provider, have unveiled a customizable pet health insurance offering, which is now accessible on petco.com. This collaboration is a testament to its shared goal of delivering affordable, integrated solutions for pet health, wellness and protection, addressing the needs of a wide range of pet owners.The distinctive feature of this insurance offering is its broad coverage, extending beyond dogs and cats to include avian a ...

Petco | Nationwide pet insurance leverages Nationwide's customizable pet health insurance product within Petco's unique and fully integrated pet care ecosystem. The co-branded experience on petco.com enables visitors to build a policy that fits the individual needs of their pet and budget. Petco | Nationwide pet insurance provides essential coverage for unexpected veterinary expenses resulting from accidental injuries including broken bones, lacerations, poisoning, and other incidents. Pet parents may also ...

Financial Performance - Net sales decreased from $1.50 billion to $1.49 billion, a period-over-period decrease of 0.5%[90] - Operating loss of $1,232.1 million primarily due to goodwill impairment of $1,222.5 million, compared to operating income of $48.1 million in the prior year[90] - Net loss attributable to Class A and B-1 common stockholders was $1,241.1 million, compared to net income of $19.9 million in the prior year[90] - Adjusted EBITDA decreased from $120.2 million to $72.2 million[90] - Gross profit margin decreased to 36.8% from 39.8% in the prior year[92] - Comparable sales change was 0.0% for the thirteen weeks ended October 28, 2023, and 4.1% for the thirty-nine weeks ended[92] - Net sales decreased by $7.1 million, or 0.5%, to $1.49 billion for the thirteen weeks ended October 28, 2023, while increasing by $122.8 million, or 2.8%, to $4.58 billion for the thirty-nine weeks ended October 28, 2023[93] - Gross profit decreased by $47.7 million, or 8.0%, to $550.0 million for the thirteen weeks ended October 28, 2023, with a gross profit rate of 36.8% compared to 39.8% in the prior year[98] - Adjusted EBITDA for the thirteen weeks ended October 28, 2023, was $72.2 million, down from $120.2 million for the same period in 2022, representing a decrease of 40%[113] - Net sales for the thirty-nine weeks ended October 28, 2023, were $4.58 billion, compared to $4.46 billion for the same period in 2022, reflecting a year-over-year increase of 2.7%[113] - The company reported a net loss attributable to Class A and B-1 common stockholders of $(1.24) billion for the thirteen weeks ended October 28, 2023, compared to a profit of $19.9 million for the same period in 2022[113] Sales and Revenue Breakdown - Total net sales for the thirteen weeks ended October 28, 2023, included $1,257.8 million from products and $236.4 million from services and other[91] - Consumables sales increased by $12.8 million, or 1.8%, to $733.3 million for the thirteen weeks ended October 28, 2023, driven by additional brands in the assortment[93] - Service-related sales, including veterinary hospitals, increased by 14.0% and 14.6% for the thirteen and thirty-nine weeks ended October 28, 2023, respectively[96] - E-commerce and digital sales increased by 4.7% and 8.4% for the thirteen and thirty-nine weeks ended October 28, 2023, respectively, driven by online initiatives[96] Expenses and Cash Flow - SG&A expenses increased by $10.0 million, or 1.8%, to $559.6 million for the thirteen weeks ended October 28, 2023, representing 37.5% of net sales[99] - Interest expense increased by $9.3 million, or 33.9%, to $36.6 million for the thirteen weeks ended October 28, 2023, primarily due to higher interest rates[103] - Free Cash Flow for the thirty-nine weeks ended October 28, 2023, was $(7.8) million, compared to $(2.6) million for the same period in 2022, indicating a decline in cash generation[116] - Net cash provided by operating activities decreased to $168.7 million for the thirty-nine weeks ended October 28, 2023, from $209.5 million for the same period in 2022, driven by lower earnings and increased cash outflows[122] - Financing activities resulted in a net cash outflow of $84.0 million for the thirty-nine weeks ended October 28, 2023, compared to $27.0 million for the same period in 2022, primarily due to principal repayments on the term loan[125] Goodwill and Impairment - Goodwill impairment charge of $1.22 billion was recorded during the thirteen weeks ended October 29, 2022, due to an interim impairment test[101] - The company incurred $1.22 billion in goodwill impairment during the thirteen weeks ended October 28, 2023, which significantly impacted net income[113] Liquidity and Debt - The liquidity position as of October 28, 2023, was $586.4 million, which includes cash and cash equivalents of $139.8 million and $446.6 million available on the ABL Revolving Credit Facility[118] - As of October 28, 2023, the Company had $1,595.3 million outstanding under the First Lien Term Loan[141] - A 100 basis points increase in variable rates on the First Lien Term Loan and ABL Revolving Credit Facility would increase annual cash interest by approximately $16.2 million[142] - The Company has no amounts outstanding under the ABL Revolving Credit Facility as of October 28, 2023[142] - The Company maintains cash and cash equivalents at major financial institutions, likely exceeding insured limits, with minimal credit risk[144] Business Operations - Total pet care centers at the end of the period remained stable at 1,429[92] - Total veterinarian practices increased to 282 from 229 in the prior year[92] - The company operates over 275 veterinary hospitals, contributing to the growth in its veterinary and grooming business[95] Taxation - The effective tax rate was 1.8% for the thirteen weeks ended October 28, 2023, resulting in an income tax benefit of $22.9 million, compared to an effective tax rate of 17.3% in the prior year[106] Market Conditions - Substantially all business is conducted in U.S. dollars, with no material effect expected from a 10% fluctuation in the relative value of the U.S. dollar[145]

Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) Q3 2023 Earnings Call Transcript November 29, 2023 8:00 AM ET Company Participants Benjamin Thiele-Long - Vice President of Corporate Communications Ron Coughlin - Chief Executive Officer Brian LaRose - Chief Financial Officer Conference Call Participants Oliver Wintermantel - Evercore ISI Peter Benedict - Robert W. Baird Simeon Gutman - Morgan Stanley Steven Zaccone - Citigroup Michael Lasser - UBS Steven Forbes - Guggenheim Securities Anna Andreeva - N ...

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 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) (State or other jurisdiction ...

Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) Q2 2023 Earnings Call Transcript August 24, 2023 8:00 AM ET Company Participants Cathy Yao - VP of IR Ron Coughlin - CEO Brian LaRose - CFO Conference Call Participants Oliver Wintermantel - Evercore ISI David Lance - Wells Fargo Simeon Gutman - Morgan Stanley Anna Andreeva - Needham & Company Steven Forbes - Guggenheim Seth Basham - Wedbush Securities Michael Lasser - UBS Steven Zaccone - Citi Greg Sommer - Gordon Haskett Operator Good morning, everyone ...

● • 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].