Petco in need of ‘swift action’ to up its financials
The Californian pet retailer performs below expectations with a flat quarter in terms of revenue.
Petco achieved a net revenue of $1.49 billion (€1.35B) in the 3 months to 28 October, a slight decrease from last year when it hit $1.5 billion (€1.17B).
CEO Ron Coughlin confirmed to investors that results were below expectations. “We continue to navigate a challenging consumer environment, and we are taking swift and decisive action to improve the performance of our business by broadening our appeal with customers and tightly managing costs and capital,” he notes.
The financial figures show a 1.8% rise in consumable product sales, keeping them the leading category with $733 million (€667M) during the quarter. Sales of pet supplies accounted for $525 million (€478.3M).
Services reported a growth of 15% more than the same period last year, totaling $236.3 million (€215.1M) this quarter, up from $205.4 million (€187M).
Vet services and outlook
Petco seems to be scaling its vet services, with 433 vets working for the company by the end of the quarter, a 21% increase year-over-year (YoY). The company noted that the number of pets seen by veterinarians also rose by 17% compared to 2022.
The retailer has adjusted its full-year guidance and expects net revenue between $6.15 billion and $6.27 billion (€5.5B to €5.7B).
The negative outlook is stark compared to the start of the year when earnings surpassed analyst’s expectations.
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