Petco's Q4 Net Revenue Up 6.1% YoY

By Bobby Samwell • Wednesday, March 13 15:27 • Permanent Link

Petco Health + Wellness Company, Inc. has released its financial results for the fourth quarter and full year of 2023. The company reported a net revenue of $1.7 billion for the fourth quarter, marking a 6.1% increase year over year. However, comparable sales declined by 0.9% compared to the previous year. The company's GAAP net loss for the quarter was $22.6 million, whereas in the prior year, there was a GAAP net income of $32.7 million.

Adjusted net income for the fourth quarter was $6.1 million, a significant decrease from the previous year's $52.8 million. Adjusted EBITDA also experienced a decline, amounting to $105.3 million compared to $157.9 million in the prior year. Operating cash flow and free cash flow for the quarter also decreased compared to the previous year.

For the full year 2023, Petco reported a net revenue of $6.3 billion, representing a 3.6% increase year over year. Comparable sales increased by 1.8% compared to the previous year. However, the company recorded a GAAP net loss of $1.3 billion, which included a goodwill impairment of $1.2 billion. In contrast, the prior year had seen a GAAP net income of $90.8 million.

Adjusted net income for the full year was $22.8 million, down from $162.6 million in the prior year. Similarly, adjusted EBITDA for the full year decreased to $401.1 million from $530.8 million in the prior year. The company's operating cash flow and free cash flow for the full year also experienced declines compared to the previous year.

Looking ahead, Petco provided guidance for fiscal Q1 2024, expecting net revenue of approximately $1.5 billion, adjusted EBITDA of around $70 million, and adjusted EPS of approximately $(0.06). For fiscal 2024, the company anticipates net interest expense of around $145 million and capital expenditures of approximately $140 million.

The company announced that it would host an earnings conference call on March 13, 2024, to discuss its financial results.

Petco Health + Wellness Company, Inc. operates over 1,500 pet care centers across the U.S., Mexico, and Puerto Rico, offering a range of pet care products and services. The company aims to improve the lives of pets, pet parents, and its own Petco partners.

Following these announcements, the company's shares moved -0.4%, and are now trading at a price of $2.55. For more information, read the company's full 8-K submission here.

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