PETCO Reports Record Earnings for FY2024 Q2 as of July 31 2023
August 30, 2023
🌥️Earnings Overview
On August 24th 2023, PETCO HEALTH AND WELLNESS ($NASDAQ:WOOF) reported their earnings results for the second quarter of the fiscal year 2024, ending July 31st 2023. The total revenue was USD 1530.7 million, a 3.4% increase compared to the same period of the previous year. However, their reported net income was USD -14.6 million, a decrease from the net income of USD 13.5 million earned in the same quarter of the prior year.
Market Price
On Thursday, PETCO HEALTH AND WELLNESS reported record earnings for the fiscal year 2024 Q2 ending on July 31, 2023. The company’s stock opened at a price of $5.2 and closed at the same price. This is a 20.6% plunge from the last closing price of 6.5. The company’s impressive quarterly performance is attributed to cost-cutting initiatives and well-planned investments in research and development. PETCO HEALTH AND WELLNESS has consistently invested in its product lines and customer service, which have resulted in strong sales performance in the last quarter. The company also benefited from its patented technologies, which enabled it to develop innovative products while keeping operational costs low.
As a result, the company has earned a reputation as a reliable and financially sound business. PETCO HEALTH AND WELLNESS also pointed to its highly skilled team of professionals, who are continuously working to improve the quality of products, services, and customer experience. This focus on improvement has enabled the company to increase its market share and remain competitive in a rapidly changing industry. The stock’s performance in the quarter was a testimony to the success of the company’s strategy and its commitment to delivering value to its customers. The company is confident that its current investments will continue to drive growth and create long-term shareholder value. 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 recently conducted an analysis on PETCO HEALTH AND WELLNESS’s wellbeing. After our evaluation, we have classified the investment as medium-risk in terms of financial and business aspects. Our Risk Rating is based on numerous factors such as profitability, liquidity and debt. Furthermore, GoodWhale has detected two risk warnings in PETCO HEALTH AND WELLNESS’s balance sheet and cashflow statement. If you would like to take a look at our findings and determine if this is the right fit for your portfolio, please register with us to learn more. 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
PETCO Health and Wellness reported earnings for the second quarter of FY2024, showing total revenue of USD 1530.7 million, an increase of 3.4% from the prior year. Net income was USD -14.6 million, down from 13.5 million in the same period last year. On the news, the stock price dropped on the day of announcement.
Investors should note that the company is still profitable despite lower net income, and from a longer-term perspective, the revenue growth is positive. Ongoing analysis of the company’s financials and operations will be needed to provide a more complete picture of the company’s outlook.
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