On this page of StockholderLetter.com we present the latest annual shareholder letter from Petco Health & Wellness Company, Inc. — ticker symbol WOOF. Reading current and past WOOF letters to shareholders can bring important insights into the investment thesis.
2023
ANNUAL REPORT
2023
ANNUAL
REPORT
Dear Fellow Shareholders,
I   d like to begin by expressing my upmost thanks and appreciation
to each of our 29,000 Petco partners for their hard work and
dedication to doing the best for pets throughout 2023.
Without doubt, Petco is an iconic brand in
the pet care category, with a combination
of differentiated products, a commitment
to veterinary and other pet services and a
powerful omnichannel delivery model.
We remain positioned to benefit from the
long-term megatrends of humanization and
premiumization, supporting consistent and
resilient category growth in a market that is
expected to reach $200 billion in sales by the
end of this decade.
But while 2023 saw progress, I recognize
we have not been executing the way we
need to in a number of areas to deliver on
our full potential.
That   s why, as we look ahead, we   ll work diligently
to align our in-store and online offering to
consumer needs, and work against fewer and
more clearly stated priorities and outcomes.
During my time as Interim CEO my focus will
be on execution, keeping our teams energized
and supported to achieve our goals, and making
progress against the promises we commit to for
ourselves, our customers, and our shareholders.
This is an exceptional business that serves millions
of pets every year. I believe that by concentrating
on our mission of improving pet lives, while
addressing the realities of the businesses   
performance with clear, consistent, and focused
prioritization, we can unlock Petco   s full potential.
1
Business
in Context
In 2023, while we saw growth in parts of
our business, pressures on discretionary
spending coupled with a more valueseeking consumer environment impacted
that growth and our profitability.
That said, our unique omnichannel offering,
including both merchandise and services,
keeps us well positioned to execute against our
long-term strategy     capturing the long-term
megatrends of the pet category.
2023 saw us evolve our business to address
the consumer dynamics we   ve been seeing,
broadening our appeal with customers and
tightly managing costs and capital.
For customers, this included taking steps to
ensure our assortment met the needs of all
pet parents, with a focus on driving traffic,
customers, units, and revenue growth.
And through a comprehensive cost and efficiency
program, we identified and are actively working
multiple areas to unlock meaningful run-rate cost
savings. These include both direct and indirect
expenses     including shipping and distribution
enhancements such as automation, meaningful
general & administrative efficiencies, and
improvements to merchandise operations.
As we navigate 2024, we   ll continue to build
on the work we   ve already done this past year
leading with focus and prioritization to stabilize
market share and improve profitability.
Specifically, this means focusing on enhancing
our online and in-store shopping experience,
supporting our partners so they can effectively
sell our complete offering, and leaning into
supply chain excellence that delivers inventory
profitability with high in-stocks and seamless
omnichannel delivery.
   As we navigate 2024, we   ll continue to
build on the work we   ve already done
this past year leading with focus and
prioritization to stabilize market share
and improve profitability.   
2
FULL YEAR
REVENUE
$6.3B
+3.6% YoY
1
COMPARABLE
SALES INCREASE
FULL YEAR
ADJUSTED EBITDA1
1.8% $401M
YoY
Non-GAAP financial measure; please refer to the section titled    Reconciliation of Non-GAAP Financial Measures to GAAP Measures    beginning on page 55 of the
company   s Annual Report on Form 10-K for the fiscal year ended February 3, 2024 for definitions and reconciliations of Non-GAAP to GAAP financial metrics.
3
 • shareholder letter icon 5/31/2024 Letter Continued (Full PDF)
 • stockholder letter icon 5/12/2023 WOOF Stockholder Letter
 • stockholder letter icon More "Specialty Retail" Category Stockholder Letters
 • Benford's Law Stocks icon WOOF Benford's Law Stock Score = 87


WOOF Shareholder/Stockholder Letter Transcript:

2023
ANNUAL REPORT

2023
ANNUAL
REPORT

Dear Fellow Shareholders,
I   d like to begin by expressing my upmost thanks and appreciation
to each of our 29,000 Petco partners for their hard work and
dedication to doing the best for pets throughout 2023.
Without doubt, Petco is an iconic brand in
the pet care category, with a combination
of differentiated products, a commitment
to veterinary and other pet services and a
powerful omnichannel delivery model.
We remain positioned to benefit from the
long-term megatrends of humanization and
premiumization, supporting consistent and
resilient category growth in a market that is
expected to reach $200 billion in sales by the
end of this decade.
But while 2023 saw progress, I recognize
we have not been executing the way we
need to in a number of areas to deliver on
our full potential.
That   s why, as we look ahead, we   ll work diligently
to align our in-store and online offering to
consumer needs, and work against fewer and
more clearly stated priorities and outcomes.
During my time as Interim CEO my focus will
be on execution, keeping our teams energized
and supported to achieve our goals, and making
progress against the promises we commit to for
ourselves, our customers, and our shareholders.
This is an exceptional business that serves millions
of pets every year. I believe that by concentrating
on our mission of improving pet lives, while
addressing the realities of the businesses   
performance with clear, consistent, and focused
prioritization, we can unlock Petco   s full potential.
1

Business
in Context
In 2023, while we saw growth in parts of
our business, pressures on discretionary
spending coupled with a more valueseeking consumer environment impacted
that growth and our profitability.
That said, our unique omnichannel offering,
including both merchandise and services,
keeps us well positioned to execute against our
long-term strategy     capturing the long-term
megatrends of the pet category.
2023 saw us evolve our business to address
the consumer dynamics we   ve been seeing,
broadening our appeal with customers and
tightly managing costs and capital.
For customers, this included taking steps to
ensure our assortment met the needs of all
pet parents, with a focus on driving traffic,
customers, units, and revenue growth.
And through a comprehensive cost and efficiency
program, we identified and are actively working
multiple areas to unlock meaningful run-rate cost
savings. These include both direct and indirect
expenses     including shipping and distribution
enhancements such as automation, meaningful
general & administrative efficiencies, and
improvements to merchandise operations.
As we navigate 2024, we   ll continue to build
on the work we   ve already done this past year
leading with focus and prioritization to stabilize
market share and improve profitability.
Specifically, this means focusing on enhancing
our online and in-store shopping experience,
supporting our partners so they can effectively
sell our complete offering, and leaning into
supply chain excellence that delivers inventory
profitability with high in-stocks and seamless
omnichannel delivery.
   As we navigate 2024, we   ll continue to
build on the work we   ve already done
this past year leading with focus and
prioritization to stabilize market share
and improve profitability.   
2

FULL YEAR
REVENUE
$6.3B
+3.6% YoY
1
COMPARABLE
SALES INCREASE
FULL YEAR
ADJUSTED EBITDA1
1.8% $401M
YoY
Non-GAAP financial measure; please refer to the section titled    Reconciliation of Non-GAAP Financial Measures to GAAP Measures    beginning on page 55 of the
company   s Annual Report on Form 10-K for the fiscal year ended February 3, 2024 for definitions and reconciliations of Non-GAAP to GAAP financial metrics.
3



shareholder letter icon 5/31/2024 Letter Continued (Full PDF)
 

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