Petco Health + Wellness Company, Inc. Reports Fourth Quarter and Full Year 2024 Financial Results

Core Insights - Petco Health and Wellness Company, Inc. reported a net revenue of $1.6 billion for Q4 2024, a decrease of 7.3% year over year, impacted by the loss of the 53rd week in 2023 [8] - The company aims for double-digit adjusted EBITDA growth in 2025, with guidance for adjusted EBITDA between $375 million and $390 million [2][3] - Petco's full year 2024 adjusted EBITDA was $336.5 million, down from $401.1 million in the previous year [8] Q4 2024 Overview - The CEO highlighted progress in returning Petco to retail operating excellence, with comparable sales increasing by 0.5% year over year [2] - Gross profit for Q4 2024 was $589.3 million, a decrease of 2.8% from $606.3 million in the previous year [8] - The GAAP net loss for Q4 2024 was $13.8 million, an improvement from a net loss of $22.6 million in the prior year [8] Full Year 2024 Overview - Total net revenue for the full year 2024 was $6.1 billion, down 2.2% year over year [8] - The company reported a GAAP net loss of $101.8 million for the full year, significantly improved from a net loss of $1.3 billion the previous year, which included a $1.2 billion non-cash goodwill impairment charge [8] - Operating cash flow for the full year was $177.7 million, compared to $215.7 million in the previous year [8] 2025 Guidance - For FY 2025, Petco expects net revenue to decline in low single digits year over year [2] - The company anticipates net interest expense of approximately $130 million and capital expenditures between $130 million and $140 million [2] - The guidance includes expectations for around 20-30 net closures of real estate locations [2] First Quarter 2025 Guidance - For Q1 2025, Petco projects net revenue to decrease in low single digits year over year, with adjusted EBITDA expected to be between $82 million and $83 million [3]