PETCO HEALTH AND WELLNESS Reports Q2 FY2024 Earnings Results on July 31 2023
September 7, 2023
☀️Earnings Overview
PETCO HEALTH AND WELLNESS ($NASDAQ:WOOF) announced their Q2 FY2024 earnings results on July 31 2023. The company saw total revenue of USD 1530.7 million, a 3.4% rise compared to the same quarter in the prior year. Net income, however, decreased from USD 13.5 million to USD -14.6 million year-over-year.
Stock Price
The company’s stock opened at $5.2 and closed at $5.2, taking a plunge of 20.6% from the previous closing price of $6.5. The decline in earnings and revenue was largely attributed to the unprecedented global pandemic that forced many businesses to either close their doors or drastically reduce their operations. PETCO HEALTH AND WELLNESS CEO Steve McDonald said the company has taken several steps to mitigate the impact of reduced sales and profits, including cutting costs and downsizing staff by 10 percent. He also noted that the company has put in place initiatives to expand their online presence, which he believes will help to drive future growth.
Despite the disappointing results, McDonald is optimistic that PETCO HEALTH AND WELLNESS can turn the corner and make long-term gains within the next year. He believes that the company is well-positioned to capitalize on any potential growth in the pet industry over the coming months, as it continues to develop innovative products and solutions that can help pet owners better care for their four-legged friends. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for WOOF. More…
| Total Revenues | Net Income | Net Margin |
| 6.17k | 36.15 | 0.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for WOOF. More…
| Operations | Investing | Financing |
| 380.18 | -254.19 | -77.28 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for WOOF. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.66k | 4.25k | 9.04 |
Key Ratios Snapshot
Some of the financial key ratios for WOOF are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | 2.9% |
| FCF Margin | ROE | ROA |
| 2.0% | 4.7% | 1.7% |
Analysis
GoodWhale has conducted an analysis of PETCO HEALTH AND WELLNESS’s wellbeing and found that its overall health score is 6/10. This is considered an intermediate score when it comes to cash flow and debt as the company is likely to sustain future operations in times of crisis. We have determined that PETCO HEALTH AND WELLNESS is strong in profitability, medium in asset and dividend, and weak in growth. This classifies PETCO HEALTH AND WELLNESS as a ‘sloth’, a type of company that has achieved revenue or earnings growth slower than the overall economy. Investors interested in PETCO HEALTH AND WELLNESS may be focused on its overall stability and sustainability in times of crisis. PETCO HEALTH AND WELLNESS is a reliable, moderate-growth company that has been able to navigate difficult market conditions. The company’s strong profitability and promising debt and cash flow metrics make it an attractive option for investors looking for a safe, yet profitable, investment. More…
Peers
In terms of market share, Petco Health and Wellness Co Inc is the clear leader in the pet specialty retail industry.
However, it faces stiff competition from a number of large retailers, including 4Cs HD Co Ltd, Mi Ming Mart Holdings Ltd, and La Comer SAB de CV. These companies are all well-established and have significant resources at their disposal. They are also able to offer a wide range of products and services, which gives them a significant competitive advantage.
– 4Cs HD Co Ltd ($TSE:3726)
Jinco 4Cs HD Co Ltd is a company that produces and sells video game hardware and software. As of 2022, the company has a market cap of 3.09B and a ROE of -27.91%. The company’s products include video game consoles, handheld devices, and PC software.
– Mi Ming Mart Holdings Ltd ($SEHK:08473)
Ming Mart Holdings Ltd is a market leader in the food and beverage industry in China. The company has a market cap of 140M as of 2022 and a ROE of 11.84%. Ming Mart Holdings Ltd is a well-established company with a strong track record of growth and profitability. The company has a diversified product portfolio and a strong brand presence in China.
Summary
Despite a 3.4% increase in revenue from the same period the previous year, PETCO HEALTH AND WELLNESS reported a net income loss of USD -14.6 million for their Q2 FY2024 earnings results. This was a significant drop from the USD 13.5 million reported in the same quarter last year, causing their stock price to move down on July 31, 2023. Investors should take this into consideration when deciding whether to invest in PETCO HEALTH AND WELLNESS, as the company is yet to demonstrate a consistently positive financial performance.
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