Petco posts earnings beat in first report since IPO, sees continued momentum in pet adoption
In its first earnings report since going public in late January, Petco reported adjusted earnings per share of $17 cents, topping analyst forecasts by $6 cents per share. Revenue also surpassed expectations, coming in at $1.34 billion for the quarter. The closely-followed comparable-store sales were up 17% in the quarter. https://ir.petco.com/static-files/8d116120-cf88-4de6-8f60-303b367c6162
“If you look at what’s going on with COVID, what happened was people were home, they were a little depressed, and they wanted furry friends to make them feel better,” Petco CEO Ron Coughlin said of the strong 2020.
According to Coughlin, 3 million pets found new homes in 2020, and the new-pet trend is still going strong so far in 2021.
“What that generates is, yes, a COVID lift for 2020, and we accelerated in Q4. But for our business, it provides an annuity. It’s not like a home gym that you get, and then you don’t get another one for 5, 10 years. You’re going to have to feed, groom, vaccinate that pet for the next decade, so it’s an annuity for our business,” Coughlin added.
Petco saw its digital sales grow by 90% during the quarter, adding approximately 1 million new customers during the quarter.
Petco has tapped into recurring revenue streams within the digital ecosystem, from automatically scheduled delivery for pet food, its subscription PupBox for new pet owners, insurance, and its Vital Care membership that offers checkups, vaccinations, grooming, and discounts for $19 a month.
In its first earnings report since going public in late January, Petco reported adjusted earnings per share of 17 cents, topping analyst forecasts by 6 cents per share. Revenue also surpassed expectations, coming in at $1.34 billion for the quarter. The closely-followed comparable-store sales were up 17% in the quarter.
“If you look at what’s going on with COVID, what happened was people were home, they were a little depressed, and they wanted furry friends to make them feel better,” Petco CEO Ron Coughlin said of the strong 2020.
According to Coughlin, 3 million pets found new homes in 2020, and the new-pet trend is still going strong so far in 2021.
“What that generates is, yes, a COVID lift for 2020, and we accelerated in Q4. But for our business, it provides an annuity. It’s not like a home gym that you get, and then you don’t get another one for 5, 10 years. You’re going to have to feed, groom, vaccinate that pet for the next decade, so it’s an annuity for our business,” Coughlin added.
Petco saw its digital sales grow by 90% during the quarter, adding approximately 1 million new customers during the quarter.
Petco has tapped into recurring revenue streams within the digital ecosystem, from automatically scheduled delivery for pet food, its subscription PupBox for new pet owners, insurance, and its Vital Care membership that offers checkups, vaccinations, grooming, and discounts for $19 a month.
To view the 2020 financials, click here
To view the interview of CNBC with the CEO of Petco click here
Source: Yahoo finance