Petco Health and Wellness Company, Inc. operates as an enterprise focused on enhancing the well-being of companion animals, their human guardians, and ...
Petco Health and Wellness Company, Inc. (ticker: WOOF) is a prominent player in the specialty retail industry, focusing on the health and wellness of companion animals. Founded in 1965 as a mail-order veterinary supply business, it has evolved into a comprehensive pet care provider. The company offers a wide range ...Petco Health and Wellness Company, Inc. (ticker: WOOF) is a prominent player in the specialty retail industry, focusing on the health and wellness of companion animals. Founded in 1965 as a mail-order veterinary supply business, it has evolved into a comprehensive pet care provider. The company offers a wide range of products and services, including consumables, supplies, veterinary care (through in-store hospitals and Vetco mobile clinics), grooming, training, and telehealth consultations. Additionally, it provides specialized services like Vital Care and pet health insurance, accessible via its digital platforms such as petco.com and others. With a retail footprint of approximately 1,500 stores and about 200 integrated veterinary hospitals, Petco serves millions of customers. The company employs around 29,000 people and is headquartered in San Diego, California. Financially, Petco has a market cap of about $794 million, with revenue per share of $21.03. Its gross profit margin is 38.7%, but net profit margin is only 0.1% due to high debt and interest expenses. The company has a debt-to-equity ratio of 2.4, indicating significant leverage. Leadership includes CEO Joel D. Anderson, CFO Sabrina Simmons, and other executives. Petco aims to nurture the pet-human bond, emphasizing wellness and integrated services. It is publicly traded on NASDAQ since January 2021. Despite challenges in profitability, the company is committed to growth through its product and service offerings.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$6.0B
-2.5%
-1.2%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$9.1M
+108.9%
-488.2%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+38.7%
+1.7%
+0.1%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+2.0%
+1652.4%
-21.7%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+0.2%
+109.1%
-495.4%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$187.0M
+276.3%
-145.3%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+3.1%
+286.1%
-145.9%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
245.7%
-7.5%
-1.9%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.90x
+5.2%
-5.5%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good day. And welcome to Peter's First Quarter 26 Earnings Conference Call. All participants will be in a listen-only mode. Today's earnings call will last 45 minutes, including remarks from management followed by a Q&A session. We ask that you please limit yourself to 1 question and 1 follow-up. To ask a question, you may press *, then 1 on your telephone keypad. To withdraw your question, please press * and then 2. Please note this event is being recorded. I would now like to turn the conference over to Roxanne Felice Meyer, Vice President Investor Relations and Treasury. Please go ahead.
Roxanne Felice Meyer: Good afternoon, and welcome to Peter's First quarter fiscal 2026 Earnings Conference Call. Joining me on the call today are Joel D. Anderson, Petco's Chief Executive Officer and Sabrina Louise Simmons, Petco's chief financial officer. In addition to their earnings release, we have posted a slide presentation on our website at ir.petco.com. I would like to remind everyone that on this call, we will make certain forward-looking statements, are subject to a number of risks and uncertainties, that could cause actual results to differ materially from such statements. These risks and uncertainties include those set out in our earnings materials and SEC filings. In addition, on today's call, we will refer to certain non GAAP financial measures. Reconciliations of these measures can be found in our earnings release, presentation, and SEC filings. With that, I will turn the call over to Joel.
Joel D. Anderson: Thanks, Roxanne, and good afternoon, everyone. Thank you for joining us to discuss our first quarter results. Our strong Q1 results provide an encouraging early validation of our Phase III reach for the sky strategy. We returned the business to a positive comp for the quarter while expanding our profitability, performing better than our quarterly outlook for both top line and adjusted EBITDA. We were particularly pleased to see the improvement in our consumables business while our differentiated services business once again delivered strong results and continues to be a growth engine for us. This solid start to the year gives us deep confidence that our growth initiatives are taking hold. It speaks directly to our innovation pipeline, rigorous execution, smarter marketing, and most importantly, the advantages of our wholly owned omnichannel ecosystem. In light of our solid first quarter, we are pleased to reaffirm our full year outlook and remain confident in our ability to drive consistent, top line results. Sabrina will take you through our financial details shortly, But first, I want to spend some time updating you on the progress we have made across our strategic 4 pillars, which are positioning Petco for long term profitable growth. Let's begin with our first pillar. Compelling product. While we are still in the early innings of evolving our product mix, and the flow of our merchandise, we have begun to introduce real newness …