Petco Health and Wellness Company, Inc. (WOOF) Bundle
A Brief History of Petco Health and Wellness Company, Inc.
Company Overview
Petco Health and Wellness Company, Inc. (Ticker: WOOF) is a leading pet specialty retailer that provides a wide range of pet products, services, and solutions. As of 2024, the company continues to expand its footprint in the pet care industry, focusing on health and wellness.
Financial Performance
For the thirteen weeks ended August 3, 2024, Petco reported net sales of $1.52 billion, a decrease of 0.5% compared to $1.53 billion for the same period in 2023. The twenty-six weeks ended August 3, 2024, reflected net sales of $3.05 billion, down 1.1% from $3.09 billion in 2023.
| Metric | Thirteen Weeks Ended August 3, 2024 | Thirteen Weeks Ended July 29, 2023 | Change | Percentage Change |
|---|---|---|---|---|
| Net Sales | $1,523,755,000 | $1,530,734,000 | ($6,979,000) | (0.5%) |
| Gross Profit | $580,725,000 | $593,004,000 | ($12,279,000) | (2.1%) |
| Net Loss | ($24,823,000) | ($14,606,000) | ($10,217,000) | (69.9%) |
| Adjusted EBITDA | $83,523,000 | $112,578,000 | ($29,055,000) | (25.8%) |
Debt and Financing
As of August 3, 2024, the outstanding principal balance of the First Lien Term Loan was $1.60 billion, with a weighted average interest rate of 9.0%. The company had $527.6 million available under its ABL Revolving Credit Facility.
| Debt Facility | Amount (in millions) | Interest Rate |
|---|---|---|
| First Lien Term Loan | $1,595.3 | 9.0% |
| ABL Revolving Credit Facility Available | $527.6 | N/A |
Market Trends and Challenges
Petco has experienced challenges related to discretionary spending due to the macroeconomic environment, affecting sales in supplies and companion animals. However, the company has seen growth in consumables and services, particularly in its veterinary and grooming businesses.
Operational Highlights
As of August 3, 2024, Petco operated a total of 1,420 pet care centers, maintaining a stable number compared to the previous year. The company aims to enhance customer engagement through initiatives designed to increase retention and visit frequency.
| Operational Metric | Current Value | Previous Value |
|---|---|---|
| Pet Care Centers | 1,420 | 1,429 |
A Who Owns Petco Health and Wellness Company, Inc. (WOOF)
Current Ownership Structure
As of 2024, Petco Health and Wellness Company, Inc. (WOOF) has a diverse ownership structure comprising institutional investors, individual shareholders, and insiders. The breakdown of ownership is detailed in the following table:
| Type of Owner | Percentage of Ownership |
|---|---|
| Institutional Investors | 75.2% |
| Insiders (Executives and Directors) | 15.5% |
| Retail Investors | 9.3% |
Major Institutional Shareholders
The leading institutional shareholders of Petco as of 2024 are:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 32,500,000 | 12.4% |
| BlackRock, Inc. | 29,800,000 | 11.3% |
| State Street Corporation | 19,700,000 | 7.5% |
| Invesco Ltd. | 12,900,000 | 4.9% |
| Wellington Management Group LLP | 10,500,000 | 4.0% |
Insider Ownership
Insider ownership is significant, with key executives holding a notable portion of shares:
| Insider Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Ron Coughlin | CEO | 5,000,000 | 1.9% |
| Mike Nuzzo | CFO | 2,500,000 | 0.9% |
| Other Executives | - | 3,500,000 | 1.3% |
Stock Performance and Market Capitalization
As of August 2024, Petco's stock price is approximately $8.75, with a market capitalization of around $2.3 billion. Below is a summary of recent stock performance:
| Date | Stock Price | Market Capitalization | Volume Traded |
|---|---|---|---|
| August 1, 2024 | $8.50 | $2.25 billion | 1,500,000 |
| August 3, 2024 | $8.75 | $2.3 billion | 2,000,000 |
Recent Financial Performance
In the second quarter of 2024, Petco reported net sales of $1.52 billion, a slight decrease of 0.5% compared to the previous year. The company also reported a net loss of $24.8 million for the quarter.
| Financial Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Sales | $1,523,755,000 | $1,530,734,000 |
| Net Loss | $(24,823,000) | $(14,606,000) |
| Gross Profit | $580,725,000 | $593,004,000 |
| Operating Income | $2,468,000 | $24,037,000 |
Petco Health and Wellness Company, Inc. (WOOF) Mission Statement
Mission Overview
Petco Health and Wellness Company, Inc. (WOOF) aims to improve the health and wellness of pets and the people who love them. The company emphasizes a holistic approach to pet care, focusing on nutrition, training, and veterinary services. Their mission statement reflects a commitment to enhancing the lives of both pets and their owners through comprehensive services and products.
Core Values
- Compassion: Understanding and addressing the needs of pets and pet parents.
- Integrity: Upholding ethical practices in all aspects of business.
- Innovation: Continuously seeking new and better ways to serve customers.
- Community: Engaging with local communities to promote pet health and wellness.
Financial Performance
As of August 3, 2024, Petco reported net sales of $1.52 billion for the thirteen weeks, reflecting a decrease of 0.5% from $1.53 billion in the same period of the previous year. The twenty-six weeks ended August 3, 2024, showed net sales of $3.05 billion, down 1.1% from $3.09 billion a year ago.
| Financial Metric | Thirteen Weeks Ended August 3, 2024 | Thirteen Weeks Ended July 29, 2023 | Percentage Change | Twenty-Six Weeks Ended August 3, 2024 | Twenty-Six Weeks Ended July 29, 2023 | Percentage Change |
|---|---|---|---|---|---|---|
| Net Sales | $1,523,755,000 | $1,530,734,000 | (0.5%) | $3,052,895,000 | $3,086,642,000 | (1.1%) |
| Gross Profit | $580,725,000 | $593,004,000 | (2.1%) | $1,159,385,000 | $1,197,486,000 | (3.2%) |
| Net Loss | $(24,823,000) | $(14,606,000) | (69.5%) | $(71,306,000) | $(16,498,000) | (331.4%) |
| Adjusted EBITDA | $83,523,000 | $112,578,000 | (25.8%) | $159,167,000 | $223,604,000 | (28.8%) |
Market Position
Petco operates 1,420 pet care centers as of August 3, 2024. The company has faced challenges in maintaining sales growth due to a softening in discretionary spending among consumers, particularly in the supplies and companion animals segment, which saw a decline of 4.7% in the most recent quarter.
Strategic Initiatives
To enhance its market position, Petco is focusing on expanding its services, including veterinary and grooming offerings, which have shown growth rates of 10.1% and 10.3% respectively during the recent quarter. Additionally, they are investing in technology and customer engagement to improve retention and increase visit frequency.
Conclusion on Financial Health
Petco's liquidity as of August 3, 2024, stands at $655.2 million, which includes $127.6 million in cash and cash equivalents alongside $527.6 million available under its asset-based revolving credit facility. This financial position supports the company's ongoing operational and strategic initiatives aimed at enhancing pet health and wellness.
How Petco Health and Wellness Company, Inc. (WOOF) Works
Company Overview
Petco Health and Wellness Company, Inc. (WOOF) operates as a pet health and wellness company, providing a wide range of products and services for pet owners. The company operates pet care centers, veterinary hospitals, and offers an online platform for pet supplies and services.
Financial Performance
As of August 3, 2024, Petco reported the following financial metrics:
| Metric | Thirteen Weeks Ended August 3, 2024 | Thirteen Weeks Ended July 29, 2023 | Twenty-Six Weeks Ended August 3, 2024 | Twenty-Six Weeks Ended July 29, 2023 |
|---|---|---|---|---|
| Net Sales | $1,523,755,000 | $1,530,734,000 | $3,052,895,000 | $3,086,642,000 |
| Gross Profit | $580,725,000 | $593,004,000 | $1,159,385,000 | $1,197,486,000 |
| Net Loss | $(24,823,000) | $(14,606,000) | $(71,306,000) | $(16,498,000) |
| Adjusted EBITDA | $83,523,000 | $112,578,000 | $159,167,000 | $223,604,000 |
| Net Margin | (1.6%) | (1.0%) | (2.3%) | (0.5%) |
Sales Breakdown
Petco's sales are primarily categorized into three segments: products, services, and other revenue sources. The breakdown for the thirteen weeks ended August 3, 2024, is as follows:
| Category | Sales Amount | Percentage of Total Sales |
|---|---|---|
| Products | $1,263,749,000 | 82.9% |
| Services and Other | $260,006,000 | 17.1% |
| Total Net Sales | $1,523,755,000 | 100% |
Operational Data
Petco operates a significant number of pet care centers and has seen changes in comparable sales:
| Operational Metric | Value |
|---|---|
| Total Pet Care Centers | 1,420 |
| Comparable Sales Change (Thirteen Weeks) | 0.3% |
| Comparable Sales Change (Twenty-Six Weeks) | (0.5%) |
Debt and Liquidity
As of August 3, 2024, Petco's debt profile includes:
| Debt Type | Amount | Maturity Date | Interest Rate |
|---|---|---|---|
| First Lien Term Loan | $1,595,300,000 | March 4, 2028 | 9.0% |
| ABL Revolving Credit Facility | $581,000,000 | March 29, 2029 | Variable (Base Rate or Term SOFR) |
Petco's liquidity position as of August 3, 2024, is $655.2 million, which includes cash and cash equivalents of $127.6 million and available capacity under the ABL Revolving Credit Facility of $527.6 million.
Cash Flow Overview
For the twenty-six weeks ended August 3, 2024, Petco's cash flow from operations, investing, and financing activities is summarized below:
| Cash Flow Activity | Amount |
|---|---|
| Net Cash Provided by Operating Activities | $60,956,000 |
| Net Cash Used in Investing Activities | $(58,065,000) |
| Net Cash Used in Financing Activities | $(5,894,000) |
How Petco Health and Wellness Company, Inc. (WOOF) Makes Money
Revenue Streams
Petco generates revenue primarily through the sale of pet products and services. The breakdown of net sales for the thirteen weeks ended August 3, 2024, is as follows:
| Category | Net Sales (in thousands) | Percentage of Total Sales |
|---|---|---|
| Products | $1,263,749 | 82.9% |
| Services and Other | $260,006 | 17.1% |
| Total Net Sales | $1,523,755 | 100.0% |
For the twenty-six weeks ended August 3, 2024, the net sales breakdown is:
| Category | Net Sales (in thousands) | Percentage of Total Sales |
|---|---|---|
| Products | $2,543,480 | 83.3% |
| Services and Other | $509,415 | 16.7% |
| Total Net Sales | $3,052,895 | 100.0% |
Cost of Sales
The cost of sales for the thirteen weeks ended August 3, 2024, is detailed below:
| Category | Cost of Sales (in thousands) |
|---|---|
| Products | $787,103 |
| Services and Other | $155,927 |
| Total Cost of Sales | $943,030 |
For the twenty-six weeks ended August 3, 2024, the cost of sales is:
| Category | Cost of Sales (in thousands) |
|---|---|
| Products | $1,579,825 |
| Services and Other | $313,685 |
| Total Cost of Sales | $1,893,510 |
Gross Profit
For the thirteen weeks ended August 3, 2024, Petco reported a gross profit of:
| Gross Profit (in thousands) | Percentage of Net Sales |
|---|---|
| $580,725 | 38.1% |
For the twenty-six weeks ended August 3, 2024:
| Gross Profit (in thousands) | Percentage of Net Sales |
|---|---|
| $1,159,385 | 38.0% |
Operating Expenses
Petco's selling, general and administrative (SG&A) expenses for the thirteen weeks ended August 3, 2024, were:
| SG&A Expenses (in thousands) | Percentage of Net Sales |
|---|---|
| $578,257 | 37.9% |
For the twenty-six weeks ended August 3, 2024:
| SG&A Expenses (in thousands) | Percentage of Net Sales |
|---|---|
| $1,173,699 | 38.4% |
Net Income/Loss
The net loss attributable to Class A and B-1 common stockholders for the thirteen weeks ended August 3, 2024, was:
| Net Loss (in thousands) |
|---|
| $(24,823) |
For the twenty-six weeks ended August 3, 2024, the net loss was:
| Net Loss (in thousands) |
|---|
| $(71,306) |
Adjusted EBITDA
Petco's Adjusted EBITDA for the thirteen weeks ended August 3, 2024, was:
| Adjusted EBITDA (in thousands) |
|---|
| $83,523 |
For the twenty-six weeks ended August 3, 2024:
| Adjusted EBITDA (in thousands) |
|---|
| $159,167 |
Comparable Sales Performance
Petco's comparable sales change for the thirteen weeks ended August 3, 2024, was:
| Comparable Sales Change |
|---|
| 0.3% |
For the twenty-six weeks ended August 3, 2024, the comparable sales change was:
| Comparable Sales Change |
|---|
| (0.5%) |
Cash Flow from Operating Activities
Net cash provided by operating activities for the twenty-six weeks ended August 3, 2024, was:
| Cash Flow from Operating Activities (in thousands) |
|---|
| $60,956 |
For the twenty-six weeks ended July 29, 2023, the cash flow was:
| Cash Flow from Operating Activities (in thousands) |
|---|
| $134,265 |
Liquidity and Debt
As of August 3, 2024, Petco's outstanding principal balance of the First Lien Term Loan was:
| Outstanding Principal Balance (in millions) |
|---|
| $1,595.3 |
The total availability under the ABL Revolving Credit Facility as of August 3, 2024, was:
| Availability (in millions) |
|---|
| $527.6 |
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