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Petco Health and Wellness pany(WOOF) - 2024 Q4 - Annual Results
WOOFPetco Health and Wellness pany(WOOF)2024-03-12 16:00

Revenue Growth and Performance - Q4 2023 net revenue increased by 6.1% year over year to 1.7billion,drivenbyan8.81.7 billion, driven by an 8.8% growth in consumables and a 17.4% growth in services and other business, partially offset by a 1.4% decline in supplies and companion animal business[4][5] - Full year 2023 net revenue increased by 3.6% year over year to 6.3 billion, with consumables up 7.1% and services and other business up 21.9%, partially offset by a 6.8% decline in supplies and companion animal business[7] - Net sales for the 14 weeks ended February 3, 2024, increased by 6% to 1,674,476thousandcomparedto1,674,476 thousand compared to 1,577,959 thousand in the same period last year[18] - Net sales for the 14 weeks ended February 3, 2024 were 1.674billion,anincreasefrom1.674 billion, an increase from 1.578 billion for the 13 weeks ended January 28, 2023[26] Profitability and Losses - Q4 2023 GAAP net loss was 22.6million,or22.6 million, or (0.08) per share, compared to a GAAP net income of 32.7million,or32.7 million, or 0.12 per share, in the prior year[5] - Full year 2023 GAAP net loss was 1.3billion,or1.3 billion, or (4.78) per share, including a 1.2billiongoodwillimpairment,comparedtoaGAAPnetincomeof1.2 billion goodwill impairment, compared to a GAAP net income of 90.8 million, or 0.34pershare,intheprioryear[5][7]−Netlossforthe14weeksendedFebruary3,2024,was0.34 per share, in the prior year[5][7] - Net loss for the 14 weeks ended February 3, 2024, was 22,575 thousand compared to a net income of 32,732thousandinthesameperiodlastyear[18]−NetlossattributabletoClassAandB−1commonstockholdersforthe14weeksendedFebruary3,2024was32,732 thousand in the same period last year[18] - Net loss attributable to Class A and B-1 common stockholders for the 14 weeks ended February 3, 2024 was 22.575 million, compared to a net income of 32.732millionforthe13weeksendedJanuary28,2023[26]−Netmarginforthe14weeksendedFebruary3,2024wasnegative1.332.732 million for the 13 weeks ended January 28, 2023[26] - Net margin for the 14 weeks ended February 3, 2024 was negative 1.3%, compared to positive 2.1% for the 13 weeks ended January 28, 2023[26] Adjusted EBITDA and Margins - Q4 2023 Adjusted EBITDA was 105.3 million, down from 157.9millionintheprioryear,whilefullyear2023AdjustedEBITDAwas157.9 million in the prior year, while full year 2023 Adjusted EBITDA was 401.1 million, down from 530.8millionintheprioryear[5][7]−AdjustedEBITDAforthe14weeksendedFebruary3,2024was530.8 million in the prior year[5][7] - Adjusted EBITDA for the 14 weeks ended February 3, 2024 was 105.340 million, a decrease from 157.889millionforthe13weeksendedJanuary28,2023[26]−AdjustedEBITDAmarginforthe14weeksendedFebruary3,2024was6.3157.889 million for the 13 weeks ended January 28, 2023[26] - Adjusted EBITDA margin for the 14 weeks ended February 3, 2024 was 6.3%, down from 10.0% for the 13 weeks ended January 28, 2023[26] - Adjusted EBITDA is used by the company to provide a meaningful comparison of current period performance with the prior period and to assess core operating performance[25] Goodwill Impairment - Goodwill impairment for the 53 weeks ended February 3, 2024, was 1,222,524 thousand, which was not present in the same period last year[18] - Goodwill impairment for the 53 weeks ended February 3, 2024 was 1.222billion,whichsignificantlyimpactedthenetlossfortheperiod[26]CashFlowandFinancialPosition−Netcashprovidedbyoperatingactivitiesforthe53weeksendedFebruary3,2024,was1.222 billion, which significantly impacted the net loss for the period[26] Cash Flow and Financial Position - Net cash provided by operating activities for the 53 weeks ended February 3, 2024, was 215,719 thousand, a decrease from 346,003thousandinthesameperiodlastyear[22]−CashandcashequivalentsasofFebruary3,2024,decreasedto346,003 thousand in the same period last year[22] - Cash and cash equivalents as of February 3, 2024, decreased to 125,428 thousand from 201,901thousandasofJanuary28,2023[20]−TotalliabilitiesasofFebruary3,2024,decreasedto201,901 thousand as of January 28, 2023[20] - Total liabilities as of February 3, 2024, decreased to 4,178,723 thousand from 4,231,352thousandasofJanuary28,2023[20]−FreeCashFlowforthe14weeksendedFebruary3,2024wasnegative4,231,352 thousand as of January 28, 2023[20] - Free Cash Flow for the 14 weeks ended February 3, 2024 was negative 2.043 million, compared to positive 70.594millionforthe13weeksendedJanuary28,2023[31]GuidanceandFutureExpectations−Q12024guidanceincludesnetrevenueofapproximately70.594 million for the 13 weeks ended January 28, 2023[31] Guidance and Future Expectations - Q1 2024 guidance includes net revenue of approximately 1.5 billion, Adjusted EBITDA of approximately 70million,andAdjustedEPSofapproximately70 million, and Adjusted EPS of approximately (0.06)[8] - Full year 2024 guidance includes net interest expense of approximately 145millionandcapitalexpendituresofapproximately145 million and capital expenditures of approximately 140 million[9] - The company anticipates a 26% tax rate and a weighted average diluted share count of 272 million for fiscal 2024[10] Business Operations and Impact - Petco operates over 1,500 pet care centers across the U.S., Mexico, and Puerto Rico, offering merchandise, companion animals, grooming, training, and veterinary services[12] - Petco has helped find homes for nearly 7 million animals through in-store adoption events in partnership with Petco Love[12] - Mexico Joint Venture EBITDA for the 14 weeks ended February 3, 2024 was 11.759million,upfrom11.759 million, up from 9.265 million for the 13 weeks ended January 28, 2023[32] Gross Profit and Operating Income - Gross profit for the 14 weeks ended February 3, 2024, decreased by 3% to 606,348thousandfrom606,348 thousand from 627,279 thousand in the same period last year[18] - Operating income for the 14 weeks ended February 3, 2024, was 166thousand,asignificantdecreasefrom166 thousand, a significant decrease from 77,560 thousand in the same period last year[18] Adjusted Net Income and EPS - Adjusted Net Income for the 14 weeks ended February 3, 2024 was 6.080million,comparedto6.080 million, compared to 52.846 million for the 13 weeks ended January 28, 2023[28] - Adjusted EPS for the 14 weeks ended February 3, 2024 was 0.02,downfrom0.02, down from 0.20 for the 13 weeks ended January 28, 2023[28] Total Assets - Total assets as of February 3, 2024, decreased to 5,363,152thousandfrom5,363,152 thousand from 6,612,829 thousand as of January 28, 2023[20]