Petco Health + Wellness Company, Inc. Reports Third Quarter Earnings

• Comparable sales grew 4.1 percent year over year and 19.6 percent on a two-year basis, resulting in 16th consecutive quarter of comparable sales growth
• Net revenue of $1.5 billion increased 4 percent year over year
• Delivered net income of $19.9 million and Adjusted EBITDA¹ of $137.6 million
• Earnings per share of $0.07, a decline of $0.13 from prior year; Adjusted Earnings Per Share¹ of $0.16, a decline of $0.04 from prior year
• Generated $109.4 million of operating cash flow in the third quarter, an increase of 27 percent year over year
• Reaffirms full year guidance for net revenue of $5.975 billion to $6.05 billion and Adjusted EBITDA¹ of $580 million to $595 million; Updates full year guidance for Adjusted Earnings Per Share¹ to between $0.75 and $0.79

Petco Health and Wellness Company, Inc., a complete partner in pet health and wellness, today announced its third quarter 2022 financial results.

In the third quarter of 2022, Petco delivered net revenue of $1.5 billion, up 4 percent versus prior year. Net income was $19.9 million or $0.07 per share compared to $52.8 million or $0.20 per share in the prior year. Adjusted Net Income¹ was $42.9 million or $0.16 per share, compared to $54  million or $0.20 per share in the prior year.

“Our Q3 results demonstrate the resilience of the pet category through economic cycles, the competitive advantages inherent in our model, and the Petco team’s incredible execution,” said Petco CEO Ron Coughlin. “Pet parents continue to prioritize the health and wellness of their pets with Petco, from our high-quality food, vet care and services, to membership programs like Vital Care which act as drivers of value and loyalty. We remain committed to redefining the industry through our differentiated offering and innovative partnerships, demonstrating the attractiveness of our one-of-a-kind ecosystem and powered by the most passionate team in retail.”

Fiscal Q3 2022 Operating Results:

Comparisons are third quarter of 2022 ended Oct. 29, 2022 versus third quarter of 2021 ended Oct. 30, 2021 unless otherwise noted.

Third quarter results reflect continued business and customer growth and operational execution, while investing in strategic growth initiatives.

• Net revenue increased 4 percent to $1.5 billion driven by comparable sales growth of 4.1 percent
• Net income decreased $32.8 million to $19.9 million or $0.07 per share, which was impacted by a $19.2 million non-cash change in the fair value of one of the company’s investments
• Adjusted Net Income¹ decreased $11.1 million to $42.9 million or $0.16 per share
• Adjusted EBITDA¹ decreased $1 million to $137.6 million

For more information, visit the company’s official press release.