The headliner from the report was that comparable sales rose 4.1% during the quarter to top the consensus mark of +3.3%.
Petco CEO Ron Coughlin said the Q3 results demonstrated the resilience of the pet category through economic cycles, as well as the competitive advantages inherent in WOOF’s model. “Pet parents continue to prioritize the health and wellness of their pets with Petco, from our high-quality food, vet care and services, to membership programs like Vital Care which act as drivers of value and loyalty,” he noted.
Adjusted net income and adjusted EBITDA were both lower than a year ago with cost of sales up 6%. WOOF also saw interest expenses rise 45% from a year ago.
Looking ahead, Petco (WOOF) sees full year revenue of $5.975B to $6.05B vs. $6.01B consensus and adjusted EBITDA of $580.0M to $595.0M. EPS of $0.75 and $0.79 is seen for the full year vs. a prior view for $0.77 to $0.81 and the consensus mark of $0.77