Companies /Consumer Cyclical

Petco Health and Wellness Co Inc - Class A

NASDAQ: WOOF Specialty Retail
$2.23
▼ $0.04 (−1.76%) today
Markets open · 3:08pm ET

Q4 2024 Earnings

Reported Mar 26, 2025, 4:05pm ET · SEC source
$-0.05
Miss −534.78%
EPS · est. $0.01 GAAP
$1.6B
Miss −0.27%
Revenue · est. $1.6B
−3.7%
Trailing market
WOOF vs S&P since report
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
0+20%Mar 26Mar 27report 4:05pm ETearnings−0.3%+14.9%
0+20%Mar 26Mar 27earnings−0.3%+14.9%
WOOF +14.9%S&P 500 −0.3%
0+20%Mar 26Mar 27report 4:05pm ETearnings−0.7%+14.9%
0+20%Mar 26Mar 27earnings−0.7%+14.9%
WOOF +14.9%NASDAQ −0.7%
0+20%Mar 25Apr 3report 4:05pm ETearnings−5.6%+7.3%
0+20%Mar 25Apr 3earnings−5.6%+7.3%
WOOF +7.3%S&P 500 −5.6%
0+20%Mar 25Apr 3report 4:05pm ETearnings−7.0%+7.3%
0+20%Mar 25Apr 3earnings−7.0%+7.3%
WOOF +7.3%NASDAQ −7.0%
+31.56%
Day of report
−7.79%
Next session
−8.41%
One week
−5.92%
30 days

S&P 500 over the same 30 days: −2.25%.

Did WOOF Beat Earnings? Q4 2024 Results

Petco Health and Wellness capped fiscal 2024 with a quarter that told two stories at once: a headline revenue miss paired with enough underlying progress to send shares surging more than 10% in after-hours trading. The pet retailer posted Q4 net revenue of $1.55 billion, down 7.3% year over year and just shy of the $1.56 billion consensus, with the decline driven largely by the absence of a 53rd week that had padded the year-ago comparison. On a per-share basis, GAAP diluted EPS came in at negative $0.05, swinging to a loss where analysts had expected roughly breakeven, though the quarter's $13.84 million net loss represented a meaningful improvement from the $22.57 million loss posted a year ago. The brightest sign for the turnaround thesis under CEO Joel Anderson was a swing to positive free cash flow of $49.68 million for the full year, up from negative $9.88 million, fueled by sharply lower capital expenditures. Looking ahead, management guided fiscal 2025 adjusted EBITDA to $375 million to $390 million, representing double-digit growth from fiscal 2024, even as revenue is expected to slip by a low single-digit percentage again.

Key Takeaways
  • Comparable sales increased 0.5% year over year in Q4
  • SG&A expenses decreased 6% year over year in Q4
  • Net loss narrowed to $13.8 million from $22.6 million in Q4 year over year
  • Full-year free cash flow improved to $49.7 million from negative $9.9 million
  • Capital expenditures reduced significantly from $225.6 million to $128.0 million for the full year

“Our results in the fourth quarter demonstrate the progress we've made to return Petco to retail operating excellence. While there is more work ahead, I am confident our new leadership team is well-positioned to build on this early momentum, deliver double-digit adjusted EBITDA improvement in 2025 and set the business up for sustainable profitable growth.”

Petco Health & Wellness CEO, on the earnings call

Forward Guidance & Outlook

For fiscal year 2025, Petco expects net revenue to be down low single digits year over year, with adjusted EBITDA of $375 million to $390 million, representing double-digit growth from fiscal 2024's $336.5 million. Capital expenditures are guided at $130-140 million, net interest expense at approximately $130 million, and depreciation & amortization at approximately $200 million. The company plans approximately 20-30 net store closures. For Q1 2025, net revenue is expected down low single digits year over year with adjusted EBITDA of $82 million to $83 million.

WOOF YoY Financials

Q4 2024 vs Q4 2023 · SEC filings Q4 2023 Q4 2024
$0$500.0M$1.0B$1.5B$1.7B$1.6BRevenue$606.4M$589.3MGross Profit$166,000$17.4MOperating Income$-9,975,488$-13,837,000Net Income
$0$500.0M$1.0B$1.5BRevenueGross ProfitOperating IncomeNet Income

WOOF Revenue by Segment

Products$1.3B−8.0%
Services and Other$241.9M−5.0%

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