Petco Health and Wellness Company, Inc. has recently released its 10-Q report, providing insights into its financial performance and operations. The company operates as a health and wellness company, focusing on enhancing the lives of pets, pet parents, and its Petco partners in the United States, Mexico, and Puerto Rico. Petco provides veterinary care, grooming, training, tele-health, and pet health insurance services, as well as pet consumables, supplies, and services through its various websites.
According to the 10-Q report, Petco's net sales increased by 1.2% from $1.49 billion to $1.51 billion comparing the thirteen weeks ended November 2, 2024, with the thirteen weeks ended October 28, 2023. The company reported operating income of $4.0 million, compared to an operating loss of $1,232.1 million in the prior year period, primarily due to a goodwill impairment. The net loss attributable to Class A and B-1 common stockholders was $16.7 million, compared to a net loss of $1,241.1 million in the prior year period. Additionally, the company reported an increase in Adjusted EBITDA from $72.2 million to $81.2 million.
The report also highlighted the breakdown of net sales, showing that consumables sales increased by 2.7%, while supplies and companion animals sales decreased by 2.8% in the thirteen weeks ended November 2, 2024, compared to the same period in the prior year. Furthermore, services and other sales increased by 5.0% during the same period.
The gross profit for Petco increased by 4.7% to $575.8 million in the thirteen weeks ended November 2, 2024, compared to the same period in the prior year. The selling, general and administrative expenses (SG&A) increased by 2.2% to $571.8 million during the same period. The company also reported a pre-tax goodwill impairment charge of $1.22 billion in the prior year period.
Following these announcements, the company's shares moved 8.0%, and are now trading at a price of $5.29. For the full picture, make sure to review Petco Health and Wellness's 10-Q report.
