Petco Q2 2024 Results: A Clearer Look
Petco Health and Wellness Company, Inc. (NASDAQ: WOOF) released its second-quarter 2024 results, outlining where the business held steady and where it has work to do. The quarter shows both pressure and progress, and the company is leaning into changes aimed at improving overall performance.
Quarterly Performance, In Context
In Q2 2024, Petco reported net revenue of $1.52 billion, a slight decrease of 0.5% year over year. Comparable sales edged up 0.3% versus last year and rose 3.5% on a two-year basis, signaling some underlying demand even as headline revenue dipped.
Category trends were mixed. Consumables grew 1.5%, reflecting steady demand for everyday pet needs. By contrast, supplies and companion animal declined 4.7%, an area the company acknowledges needs renewed focus.
The company reported a GAAP net loss of $24.8 million, or $(0.09) per share, compared with a loss of $14.6 million, or $(0.05) per share, in the prior year. Adjusted EBITDA was $83.5 million, down from $112.6 million a year ago.
CEO Perspective and Priorities
Chief Executive Officer Joel Anderson struck an optimistic tone about the road ahead. He credited groundwork laid by teams across the business and underscored the opportunity to sharpen execution. As Anderson put it, the company sees room to materially improve operating and financial performance, better leverage Petco’s strengths to gain share, and deliver sustained profitability.
Fiscal Q3 Outlook
For the third quarter, Petco expects revenue near $1.5 billion. The company projects Adjusted EBITDA in the range of $76 million to $80 million and anticipates Adjusted EPS between $(0.03) and $(0.04).
Full-Year Financial Framework
Petco is maintaining its full-year outlook. It expects approximately $145 million in net interest expense and around $140 million in capital expenditures. The company is planning for a 26% tax rate and a weighted average diluted share count of 272 million, while continuing to fund ongoing operational investments.
Operational Resets Underway
To navigate current pressures, Petco is implementing targeted operational resets with a focus on cost discipline and execution. The intent is twofold: capture new revenue opportunities and stay aligned with what customers want in the current environment.
Serving Pets, People, and Communities
Petco’s work extends beyond the financials. The company operates over 1,500 pet care centers that offer products alongside services such as grooming and veterinary care. That combination—goods plus services—supports everyday pet needs and helps strengthen the bond between pets and their families.
Frequently Asked Questions
What was Petco’s net revenue in Q2 2024?
Net revenue totaled $1.52 billion in the second quarter of 2024, a decrease of 0.5% compared with the same period last year.
What revenue level is Petco guiding to for Q3 2024?
Petco expects third-quarter revenue to land around $1.5 billion.
How did Adjusted EBITDA compare to last year?
Adjusted EBITDA was $83.5 million in Q2 2024, down from $112.6 million in the prior-year quarter.
Who leads Petco, and what’s his outlook?
Joel Anderson is Petco’s CEO. He expressed confidence about improving operations and profitability, highlighting groundwork already in place and opportunities to gain market share.
How many pet care centers does Petco operate?
Petco operates more than 1,500 pet care centers that offer both products and services, including grooming and veterinary care.
