Petz: strong revenue growth and private label sales surge

São Paulo-based pet retailer Petz continues to put challenging times behind it, with some significant highlights in its Q4 results.

Total gross revenue for the Q4 of the 2024 financial year (FY) was up 7.4% year-over-year (YoY) to R$1.1 billion ($186.5M/€172.1M) while gross profit gained 9.2% to R$417.3 million ($73.5M/€67.8M).

Following a rebound of its same-store sales in Q3, Petz continued the momentum with a 5.1% increase, a significant acceleration from the 3.4% growth of the previous quarter.

The performance also reflects a turnaround from the 1.5% decline reported in Q4 of FY2023. By the end of 2024, Petz had 262 stores, 5 of which opened between October and December.

Physical stores are vital

Physical store sales were up 11.4% YoY, while its e-commerce operation posted a 6.4% increase. The importance of these two channels to each other is clear: 92% of its digital sales are ordered online and either shipped or collected in-store.

The company managed a 9% growth in its B2C sales without passing on the impacts of inflation to its clients through higher prices. Customer loyalty, coupons, and acquiring new shoppers were all key factors.

Petz says its physical stores are vital to its business and “crucial for delighting our customers.”

Private label and toys

Another win for the retailer is its private label brand. Sales of these products surged 40% YoY to reach a 12% market share, thanks in part to an increase in its entry-level product range.

Petz plans to expand further in 2025, especially into pet toys, with “hundreds” of SKUs to come.

The company credits this rise to revitalizing its ‘accessories’ category, which, combined with ‘hygiene’ and ‘cleaning,’ account for the strongest growth among its main product listings.

Another highlight for Petz was the launch of its Selections dry food range, which includes 20 SKUs, 11 for dogs and 9 for cats, and is sold in-store and online.

Best performing categories

Petz’s best-performing category in Q4 was hygiene and cleaning (16.4% YoY), followed by accessories (15.6% YoY).

Food continues to account for the largest share (58.9%) of the company’s product revenue and posted 8.9% growth YoY, just ahead of pharmacy (8.8%).

In the services sector, there was a growth of 14.0% in both the occupancy rate for grooming and bathing and the number of baths per professional. With a strategic focus on revitalizing the services part of its business, Petz improved its profitability and cash margin in 2024.