Petco Health + Wellness Company, Inc. Reports Second Quarter 2024 Earnings Results

Financial Performance - Petco reported net revenue of $1.52 billion for Q2 2024, a decrease of 0.5% year over year [1][2] - Comparable sales increased by 0.3% year over year and 3.5% on a two-year basis [1] - The GAAP net loss for Q2 2024 was $24.8 million, or $(0.09) per share, compared to a net loss of $14.6 million, or $(0.05) per share in the prior year [1][2] - Adjusted EBITDA for the quarter was $83.5 million, down from $112.6 million in the prior year [1][2] Business Segments - The consumables business grew by 1.5% year over year, while services and other business increased by 3.1% [2] - The supplies and companion animal business saw a decline of 4.7% compared to the previous year [2] Cash Flow and Capital Expenditures - Operating cash flow for Q2 2024 was $69.4 million, down from $96.6 million in the prior year [1] - Free cash flow was reported at $42.0 million, compared to $44.6 million in the previous year [1] Future Outlook - For Q3 2024, Petco expects net revenue to be approximately $1.5 billion and Adjusted EBITDA to be between $76 million and $80 million [4] - The company anticipates an Adjusted EPS of $(0.03) to $(0.04) for Q3 2024 [4] - Full-year capital expenditures are expected to remain around $140 million [4] Management Commentary - The CEO expressed optimism about improving retail fundamentals and profitability, highlighting opportunities for enhanced performance and shareholder value [3]