The earnings call presented a challenging quarter with results below expectations, highlighted by a decline in gross margin, negative EPS, and significant goodwill impairment. However, there were positive developments such as the growth in services, introduction of value brands, and improved liquidity. The sentiment reflects a company in transition, aiming to adapt to consumer trends with a strategic shift towards value offerings.

Company Guidance

During Petco's Third Quarter 2023 earnings call, the guidance provided highlighted several pivotal metrics and strategic shifts. The company anticipates revenue for the full fiscal year to be between $6.15 billion and $6.275 billion, alongside an adjusted EBITDA of approximately $400 million and adjusted EPS of around $0.08. Petco is on track to achieve $40 million in cost benefits in the first year, part of a broader $150 million run rate savings plan by the end of fiscal 2025. However, Petco experienced a net revenue decline of 0.5% year-over-year to $1.49 billion for the quarter, with comparable sales remaining flat due to increased consumer preference for value and ongoing discretionary spending pressures. Gross profit fell to $550 million, impacted by upfront costs associated with expanding the value brand assortment, which is expected to become margin dollar accretive in 2024. The company also reported a significant goodwill impairment of $1.2 billion. Petco aims to adapt to the current economic environment by enhancing its value offerings, revising pricing strategies, and improving supply chain and labor efficiencies, with the goal of driving future growth and profitability.

Expansion of Services

The veterinary services team delivered 14% growth, with a total of 282 full-service veterinary hospitals and averaging 1,481 veterinary clinics per week.

Introduction of Value Brands

Petco introduced major value brands such as Friskies, PEDIGREE, Purina ONE, and Fancy Feast, resulting in significant new or lapsed customer acquisitions.

Positive Customer Growth

Petco returned to customer growth in Q3 with approximately 60,000 net additions.

Strong Liquidity Position

The company reported strong liquidity with $586 million, including $140 million in cash and $446 million availability on credit.

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Petco Health and Wellness Company (WOOF) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

Daily Earnings Calendar >

WOOF Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Mar 18, 2021	2020 (Q4)	0.13 / 0.17	-0.027	729.63% (+0.20)	―	―
May 20, 2021	2021 (Q1)	0.09 / 0.17	-0.118	244.07% (+0.29)	―	―
Aug 19, 2021	2021 (Q2)	0.20 / 0.25	0.028	792.86% (+0.22)	―	―
Nov 18, 2021	2021 (Q3)	0.18 / 0.20	0.08	150.00% (+0.12)	―	―
Mar 08, 2022	2021 (Q4)	0.24 / 0.28	0.17	64.71% (+0.11)	―	―
May 24, 2022	2022 (Q1)	0.15 / 0.17	0.17	0.00% (0.00)	―	―
Aug 24, 2022	2022 (Q2)	0.22 / 0.19	0.25	-24.00% (-0.06)	―	―
Nov 30, 2022	2022 (Q3)	0.16 / 0.16	0.2	-20.00% (-0.04)
Mar 22, 2023	2022 (Q4)	0.24 / 0.20	0.28	-28.57% (-0.08)
May 24, 2023	2023 (Q1)	0.05 / 0.06	0.17	-64.71% (-0.11)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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WOOF Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Dec 05, 2024	$4.90	$5.29	+7.96%
Sep 10, 2024	$3.07	$4.08	+32.90%
May 22, 2024	$2.45	$2.88	+17.55%
Mar 13, 2024	$2.56	$2.52	-1.56%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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