Petco Health and Wellness Company, Inc. has recently released its 10-Q report, providing a detailed insight into its financial condition and results of operations. The company operates as a health and wellness business, focusing on enhancing the lives of pets, pet parents, and its Petco partners in the United States, Mexico, and Puerto Rico. It offers veterinary care, grooming, training, tele-health, pet health insurance services, and pet consumables, supplies, and services through its various brands and digital platforms.
In the 10-Q report, Petco discussed its management's assessment of the business performance, including the use of comparable sales and non-GAAP financial measures such as Adjusted EBITDA and Free Cash Flow to evaluate its operating performance and make strategic decisions regarding the allocation of capital.
The report revealed that for the thirteen weeks ended August 3, 2024, Petco experienced a decrease in net sales from $1.53 billion to $1.52 billion, representing a period-over-period decrease of 0.5%. The operating income decreased to $2.5 million from $24.0 million in the prior year period, and the net loss attributable to Class A and B-1 common stockholders increased to $24.8 million from $14.6 million in the prior year period. Additionally, there was a decrease in Adjusted EBITDA from $112.6 million to $83.5 million.
The report also provided a detailed breakdown of the company's results of operations, including net sales, cost of sales, gross profit, selling, general and administrative expenses, interest expenses, and loss on partial extinguishment of debt. It highlighted the performance of various product categories and the impact of macroeconomic factors on sales.
As a result of these announcements, the company's shares have moved 32.3% on the market, and are now trading at a price of $4.06. Check out the company's full 10-Q submission here.
