Petco CEO Ron Coughlin is out, former Best Buy exec to step in as interim chief executive

CEO Transition and Leadership - CEO Ron Coughlin is stepping down and will serve as an advisor to the board during the leadership transition [1] - R Michael Mohan, a board member and former Best Buy executive, will take over as interim CEO [1] - Mohan has been on the company's board since March 2021 and previously served as lead independent director [1] - Coughlin expressed pride in the differentiated business model built during his tenure, which positions the company well for the future [1] Financial Performance - Fiscal Q4 results were roughly in line with expectations: adjusted EPS of 2 cents vs 2 cents expected, revenue of $1 67 billion vs$1 62 billion expected [2] - Net loss of $22 6 million for the three-month period ended Feb 3, compared to net income of$32 7 million a year earlier [2] - Sales rose 6% to $1 67 billion from$1 58 billion a year earlier [3] - Shares rose as much as 9% in premarket trading following the CEO change and earnings announcements [3] Market and Industry Trends - Petco's market cap has eroded over the last year, down to $784 million from around$3 billion in February 2023 [3] - The pet industry has faced pressure and a demand slowdown after a pandemic-fueled boom [3] - New pet adoptions have slowed, leading to strong sales in stable categories like pet food and medicine but sluggish demand for high-margin items like beds, leashes, and toys [4] Strategic Transformation - Under Coughlin's leadership since 2018, Petco transformed into a health and wellness company [4] - The company stopped selling unhealthy pet food, removed products like shock collars, and expanded its services and veterinary business [4] - In 2020, the company changed its name to Petco Health and Wellness Company [4] - Coughlin led the company through its IPO in 2021 [4]