Petco Health and Wellness pany(WOOF) - 2026 Q1 - Quarterly Results

Financial Performance - Q1 2025 net sales were $1.5 billion, a decrease of 2.3% year over year, aligning with the company's outlook[6] - Comparable sales fell by 1.3% year over year, indicating a slight decline in customer spending[6] - GAAP net loss decreased by $34.8 million to $11.7 million, showing significant progress in financial performance[6] - Net loss for the 13 weeks ended May 3, 2025, was $11,661 thousand, an improvement from a net loss of $46,483 thousand for the same period in 2024[18] - Free Cash Flow for the 13 weeks ended May 3, 2025, was $(43,866) thousand, compared to $(41,055) thousand for the same period in 2024, indicating a decline in cash generation[25] - The accumulated deficit increased to $(1,160,720) thousand from $(1,149,059) thousand, reflecting a worsening financial position[16] Operational Efficiency - Gross profit margin improved by approximately 30 basis points to 38.2% as a percentage of net sales[6] - Operating income increased by $33.1 million to $16.4 million, reflecting improved operational efficiency[6] - Adjusted EBITDA rose by $13.8 million to $89.4 million, demonstrating stronger earnings potential[6] - Adjusted EBITDA increased to $89,449 thousand, up from $75,644 thousand year-over-year, representing a growth of approximately 18.2%[22] - Adjusted EBITDA margin improved to 6.0% from 4.9% year-over-year, indicating enhanced operational efficiency[22] Future Outlook - For FY 2025, net sales are expected to decline by low single digits year over year, with adjusted EBITDA projected between $375 million and $390 million[5] - The second quarter 2025 outlook anticipates net sales to also decrease by low single digits year over year, with adjusted EBITDA expected to be between $92 million and $94 million[7] - The company plans capital expenditures of $125 million to $130 million for FY 2025, indicating ongoing investment in growth initiatives[5] Market Presence - Petco operates over 1,500 pet care centers across the U.S., Mexico, and Puerto Rico, enhancing its market presence and customer accessibility[9] Asset and Liability Management - Total assets decreased from $5,194,430 thousand to $5,121,136 thousand, a decline of approximately 1.4%[16] - Total current liabilities decreased from $1,139,163 thousand to $1,083,477 thousand, a reduction of approximately 4.9%[16] - The company reported a net cash used in operating activities of $(15,454) thousand, compared to $(8,414) thousand in the previous year, indicating increased cash outflow[18] - Cash and cash equivalents at the end of the period were $138,744 thousand, up from $90,864 thousand in the prior year[18]