Petco announces rise in consumables and services businesses amid leadership transition
The pet retailer’s yearly net revenue until February stood at $6.3 billion (€5.7B), an increase of 3.6% compared to the previous year.
The San Diego-based firm reported that its consumables business was up 7.1% versus the prior year, while its services and other businesses rose 21.9% compared to the previous year.
“Growth in the company’s consumables and services and other business was partially offset by its supplies and companion animal business, down 6.8 percent versus the prior year,” says the company.
Adjusted net income was $22.8 million (€20.8M) for the 53 weeks ending 3 February 2023, compared to $162.6 million (€148.6M) during the same period in 2022. Adjusted EBITDA was $401.1 million (€366.6M) compared to $530.8 million (€485.2M) in the prior year.
In Q4 FY 2023, the company recorded net revenue of $1.7 billion (€1.5B), an increase of 6.1% year over year. However, its comparable sales declined 0.9% year over year and increased 4.4% on a 2-year basis.
Petco expects net revenue of around $1.5 billion (€1.3B) and adjusted EBITDA of around $70 million (€63.9M) in FY 2024. However, due to the change in leadership, the company stated it would not provide full-year guidance.
New interim CEO
The firm also announced changes in its leadership, with Ron Coughlin stepping down as CEO and appointing Mike Mohan as interim CEO, effective immediately.
Coughlin has also stepped down as a Board Member and will serve as an Advisor to the Board during its leadership transition while it commences its search for a permanent CEO.
Mohan has served on Petco’s board since March 2021 and has been its Lead Independent Director since July 2021. He previously worked as the President and Chief Operating Officer of the American consumer electronics retailer Best Buy.
Commenting on his new role, Mohan says he will work toward “strengthening our business, driving profitability through operational discipline and execution that will improve growth, drive margin and generate cash to create shareholder value.”
“My focus will be on our people, our operations and our customer experience, working together to advance our strategy.”
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