Petco Health & Wellness reported its 17th consecutive quarter of comp growth in its fourth quarter, along with its 16th consecutive quarter of customer growth.
The pet supplies and services retailer reported that its net revenue increased 4.2% to $1.58 billion in the quarter ended Jan. 28. Comparable sales grew 5.3% year over year, resulting in the seventeenth consecutive quarter of comparable sales growth
Net income was $32.7 million or $0.12 per share, compared to $29.0 million or $0.11 per share in the year-ago quarter. Adjusted net income1 was $62.0 million or $0.23 per share, compared to $75.1 million or $0.28 per share in the prior year.
In June (2022), Petco unveiled a new format for rural markets, Petco Neighborhood Farm & Pet Supply, that features health-and-wellness products and services for farm animals as well as traditional pets. On the company’s earnings call, CFO Brian LaRose said the company plans to open 10 to 15 rural locations in the year ahead.
In addition, Petco is expanding its veterinary hospital concept. It expects to open 50 to 55 vet hospitals this year.
In other news, Petco has launched a program in partnership with FreshPet that delivers fresh, customized subscription meal plans for dogs. The offering is now available across 15 states, including California, Texas, Florida and New York, and will be available nationally later this year. It comes as the fresh and frozen pet food category is expected to grow three to four times in the next four years, reaching up to $6 billion, according to Nielson IQ.
After completing a short questionnaire on their dog's attributes, sensitivities and health goals on the Petco website, customers will receive a personalized meal plan with specific feeding guidelines based on the pet's breed, age, body type, activity level and more.. The subscription meal plan starts at $3 per day, and customers can select their preferred delivery window for the food to be sent via Petco's delivery services.
"This exclusive, customized home-delivered product is a breakthrough in the way pet parents can provide their pets with the very best nutrition," said Amy College, Petco's chief merchandising officer. "We're thrilled to partner with Freshpet, the leader in fresh pet food, to bring Freshpet Custom Meals to life through our differentiated, seamless omnichannel ecosystem, as part of our ongoing commitment to pets' high-quality nutrition and complete health and wellness."
For the full year, Petco’s net revenue increased 3.9% to$6.04 billion driven by comparable sales growth of 4.5%.
Petco operates more than 1,500 locations across the U.S., Mexico and Puerto Rico, which offer merchandise, companion animals, grooming, training and a growing network of on-site veterinary hospitals and mobile veterinary clinics.