Petco Health and Wellness Company, Inc. has recently released its 10-K report, providing a comprehensive overview of its operations and financial performance. The company, founded in 1965 and headquartered in San Diego, California, operates as a health and wellness company with a focus on enhancing the lives of pets, pet parents, and its Petco partners in the United States, Mexico, and Puerto Rico. Petco offers a wide range of products and services, including veterinary care, grooming, training, tele-health, and pet health insurance services, as well as pet consumables, supplies, and services through its various websites.
In its 10-K report, Petco discusses the management's discussion and analysis of financial condition and results of operations. The company emphasizes its omnichannel ecosystem, which includes over 1,500 pet care centers, a growing network of 288 full-service veterinary hospitals, a digital channel, and flexible fulfillment options. Petco's Vital Care Premier membership program aims to provide a comprehensive offering of products and services to fulfill pets' health and wellness needs, making it easier and more affordable for pet parents to care for their pet's whole health. The company also collaborates with Petco Love, a nonprofit organization, to support local animal welfare groups and facilitate in-store adoption events.
Petco evaluates its performance using various measures, including comparable sales, which is an important metric in the retail industry. The company also reviews non-GAAP financial measures such as Adjusted EBITDA and Free Cash Flow to assess its operating performance and make strategic decisions regarding the allocation of capital. Petco acknowledges that macroeconomic factors, including rising interest rates, inflationary pressures, supply chain constraints, and global economic and geopolitical developments, have had varying impacts on its results of operations.
The company outlines several factors that affect its business, including pet industry trends, customer pet purchase trends, customer acquisition, retention, and spend, innovation and transformation, gross margin and expense management, and talent and culture. Additionally, Petco provides detailed insights into its net sales, cost of sales, gross profit, selling, general, and administrative expenses, goodwill and indefinite-lived intangible impairment, and interest expense, offering a comprehensive view of its financial performance and key operational areas. As a result of these announcements, the company's shares have moved 3.4% on the market, and are now trading at a price of $2.0. Check out the company's full 10-K submission here.
