Petco increases revenue by 4% in 2022; profit plunges by almost half

The American pet retailer increased consumables sales by 13% in the year, with an overall better performance in Q4.

The California-based pet retailer registered a revenue of $6.04 billion (€5.60B) for its fiscal year 2022, ending 28 January 2023, up 3.9%.

Comparable sales grew 4.5% in the year, but yearly net income was down by 44.8% to $90.8 million (€84.2M).

Consumables sales were up 12.9% year-over-year, while the supplies business went down 8.9% against 2021. The retailer acquired 1 million new customers in its FY taking the total tally to 25.1 million.

Recurring purchases

The company said it earned more than $1 billion (€930M) in recurring purchases from customers participating in its frequent revenue programs.

During its FY, it also added 50 full-service vet hospitals taking the number of Petco-owned hospitals to 247.

It also invested $278 million (€258M) in pet care centers, including vet buildouts and cooling infrastructure to support its fresh frozen expansion.

Better performance in Q4

In the last quarter of the FY, Petco’s net revenue grew 4.2% to hit $1.58 billion (€1.47B), and comparable sales improved by 5.3%.

The company’s consumables business boosted revenue in the quarter, propelled by its private label range, WholeHearted. Net income was up $3.7 million (€3.43M), reaching $32.7 million (€30.3M) in the period.

Digital sales in the quarter were up 12% year-over-year as it acquired more than 70,000 new customers, the company said.

Petco opened 3 additional rural locations in Q4, bringing the total to 5. The company claims it sees “untapped potential” of $7 billion (€6.5 billion) in the pet retailing market in America’s small towns.

Petco CEO Ron Coughlin said that the numbers in the fourth quarter showed “the enduring strength of the pet category” and the ability of the retailer “to grow through economic cycles.”