Companies /Consumer Cyclical

Petco Health and Wellness Co Inc - Class A

NASDAQ: WOOF Specialty Retail
$2.21
▼ $0.06 (−2.64%) today
Markets open · 3:34pm ET

Q3 2024 Earnings

Reported Dec 5, 2024, 4:05pm ET · SEC source
$-0.02
Beat +40.12%
EPS · est. $-0.03 Adjusted
$1.5B
Beat +0.72%
Revenue · est. $1.5B
−24.8%
Trailing market
WOOF vs S&P since report
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
0+8%+16%+24%Dec 5Dec 6report 4:05pm ETearnings+0.2%+7.5%
0+8%+16%+24%Dec 5Dec 6earnings+0.2%+7.5%
WOOF +7.5%S&P 500 +0.2%
0+9%+18%+27%Dec 5Dec 6report 4:05pm ETearnings+0.9%+7.5%
0+9%+18%+27%Dec 5Dec 6earnings+0.9%+7.5%
WOOF +7.5%NASDAQ +0.9%
−18%−9%0Dec 4Dec 13report 4:05pm ETearnings−0.4%−21.5%
−18%−9%0Dec 4Dec 13earnings−0.4%−21.5%
WOOF −21.5%S&P 500 −0.4%
−18%−9%0Dec 4Dec 13report 4:05pm ETearnings+1.6%−21.5%
−18%−9%0Dec 4Dec 13earnings+1.6%−21.5%
WOOF −21.5%NASDAQ +1.6%
+7.96%
Day of report
−11.06%
Next session
−15.88%
One week
−29.30%
30 days

S&P 500 over the same 30 days: −4.49%.

Did WOOF Beat Earnings? Q3 2024 Results

Petco Health and Wellness delivered a better-than-feared third quarter, posting adjusted EPS of -$0.02 against a consensus estimate of -$0.03, a 40.12% beat, while revenue of $1.51 billion edged past the $1.50 billion consensus and grew 1.2% year over year. The clearest driver behind the improvement was margin expansion, with gross profit climbing 4.7% to $575.76 million and adjusted EBITDA rising to $81.24 million from $72.16 million a year ago, reflecting early progress in CEO Joel Anderson's operational turnaround. Services and consumables led the revenue mix, growing 5.0% and 2.7% respectively, though discretionary categories like supplies and companion animals remained a soft spot, declining 2.8%. The GAAP net loss narrowed sharply to $16.67 million, compared to $1.24 billion in the prior year, a figure that was heavily distorted by a non-cash goodwill impairment. Looking ahead, Petco guided for Q4 revenue of approximately $1.55 billion and adjusted EBITDA of $90 million to $95 million, with adjusted EPS between $0.00 and $0.02.

Key Takeaways
  • Consumables business up 2.7% year over year
  • Services and other business up 5.0% year over year
  • Comparable sales increased 1.8% year over year
  • Gross profit increased 4.7% year over year
  • Adjusted EBITDA margin improved to 5.4% from 4.8%

“Our third quarter results demonstrate the meaningful progress we're making to strengthen our retail fundamentals to drive sustainable, profitable growth. While there is more work to do, our improving results increase our conviction that we are on the right path to position Petco to win long-term. Our entire organization is focused on driving profitability and free cash flow, and I'm confident we're set up for a solid finish to 2024.”

Petco Health & Wellness CEO, on the earnings call

Forward Guidance & Outlook

For fiscal Q4 2024, Petco expects net revenue of approximately $1.55 billion, Adjusted EBITDA between $90 million and $95 million (including a minimum of $10 million in third-party consulting fees associated with transformation efforts), and Adjusted EPS between $0.00 and $0.02. For full fiscal year 2024 (52-week year), the company expects net interest expense of approximately $140 million and capital expenditures of approximately $130 million. Guidance assumes a 26% tax rate and 273 million weighted average diluted share count, with economic conditions, currency rates, and the tax and regulatory landscape remaining generally consistent.

WOOF YoY Financials

Q3 2024 vs Q3 2023 · SEC filings Q3 2023 Q3 2024
$0$500.0M$1.0B$1.5B$1.5B$1.5BRevenue$550.0M$575.8MGross Profit$1.6M$4.0MOperating Income$-8,392,731$-16,673,000Net Income
$0$500.0M$1.0B$1.5BRevenueGross ProfitOperating IncomeNet Income

WOOF Revenue by Segment

Products$1.3B+0.0%
Services and Other$248.2M+5.0%

Figures from SEC filings and company reports. Not investment advice.