- Outlines strategic approach to drive sustained, profitable
growth with industry-leading ecosystem
- Reinforces success across services, unique merchandise,
digital and powerful data
- Reaffirms Fiscal Year 2022 outlook; Provides long-term
financial framework for growth priorities and Adjusted EBITDA
margin expansion
SAN DIEGO, March 23, 2022 /PRNewswire/ -- Petco Health
and Wellness Company, Inc. (Nasdaq: WOOF), a
complete partner in pet health and wellness, is
hosting its 2022 Investor Day today, Wednesday, March 23, 2022, in New York, N.Y. The event begins at
8 a.m. Eastern Standard Time and can
be viewed virtually here. In conjunction with the event, the
company is unveiling its longer-term financial framework, as well
as its strategic and capital priorities.
"Petco is on one of the steepest growth trajectories in all of
retail, supported by our position as the only fully integrated
provider of pet health and wellness across products, veterinary and
services, digital, and in brick and mortar channels," said
Ron Coughlin, Chairman and CEO of
Petco. "We are defining the future of pet parenting in an
incredibly high growth and economically resilient category. Our
ecosystem is built to capture the market opportunity and positions
us as a leader of what we call Retail 3.0. As we build on last
year's incredible performance, we're emerging stronger and more
confident that our strategic moats position us to compete and
win."
Highlights – What You'll Hear From Us Today
Petco will provide updates on its new and existing strategic
initiatives to drive growth, including:
- Outlining an integrated future loyalty program unified under
Vital Care, migrating
customers to subscription, saving money for customers, driving
share of wallet for Petco, and expanding Petco's position as the
premiere destination for pet parents;
- Testing "Small Town Rural" concepts in key strategic locations
and driving brand awareness and penetration in low-share
markets;
- Building a differentiated merchandise offering through key
vendor relationships, such as its recently expanded partnership
with Just Food For Dogs, a category defining
over-the-counter offering with the Healthy Habits Hub, and
continuing to scale owned brands, including Reddy and
Whole Hearted;
- Scaling personalization capabilities by leveraging the power of
its comprehensive pet database and data-driven approach to enhance
the pet parent experience, and deepen engagement and loyalty;
- Investing to build a customer-centric, flexible fulfillment
network by enhancing the company's physical footprint and digital
capabilities;
- Driving access to new, high-value customers through
partnerships with best-in-class brands, such as Lowes;
and
- Committing to improving the lives of pets, pet parents and
Petco partners as evidenced by becoming the first pet retailer in
history to receive the American Humane CertifiedTM Seal
of Approval.
Petco's Strategy for Long-Term Value Creation
The company will share its updated strategic priorities that
support its vision to create the future of pet health &
wellness as it continues to capture market share, drive profitable
growth and expand its total addressable market. Together we believe
that will enable sustainable, profitable growth through strategies,
including:
- Deepening Petco's competitive moats through its unique and
comprehensive pet health & wellness ecosystem, in a
$119B category that is large and
growing;
- Scaling Petco's services offering – led by its national
veterinary care footprint – by providing pet parents with unrivaled
access to general and specialized health care services;
- Leading the category with an enhanced merchandise offering,
emphasizing premium owned and exclusive products Pet Parents can't
get in other channels;
- Leveraging Petco's national pet care center network to enable
differentiated fulfillment capabilities to meet customer needs
regardless of how they choose to shop; and
- Growing competitive advantages, including the recently launched
Vital Care 2.0 membership
subscription program, deepening our data insights and harnessing
the power and passion of our knowledgeable partners.
Long-Term Financial Framework
Petco Health + Wellness
Co., is announcing a long-term financial framework:
Financial
Metric
|
Target
|
Revenue
growth
|
+High single
digits
|
Adjusted EBITDA
growth1
|
Faster than
Revenue
|
Adjusted Net Income
growth1
|
+Low double
digits
|
Net debt-to-Adjusted
EBITDA ratio1
|
<1.9x
|
Reaffirms Full Year 2022 Guidance
Petco is also reaffirming its 2022 Fiscal Year guidance which it
provided at its year-end earnings announcement:
Financial
Metric
|
Current
Guidance
|
Net
Revenue
|
$6.15 - $6.25
billion
|
Adjusted
EBITDA1
|
$630 - $645
million
|
Adjusted Earnings
per Share1
|
$0.97 -
$1.00
|
Capital
Expenditures
|
$275 - $325
million
|
Assumptions in the guidance include that economic conditions,
currency rates and the tax and regulatory landscape remain
generally consistent. Adjusted EPS guidance assumes approximately
$76 million
of interest expense, a 26 percent tax rate and
a 267 million weighted average diluted
share count.
(1) We
have not reconciled Adjusted EBITDA,
Adjusted EPS and Net debt-to-Adjusted EBITDA ratio
outlook to the most comparable GAAP outlook because
it is not possible to do so without unreasonable efforts due to the
uncertainty and potential variability of reconciling items, which
are dependent on future events and often outside of
management's control and which could be significant. Because such
items cannot be reasonably predicted with the level of
precision required, we are unable to provide outlook for the
comparable GAAP measures. Forward-looking estimates of
Adjusted EBITDA, Adjusted EPS and Net debt-to-Adjusted EBITDA
ratio are made in a manner consistent with the relevant definitions
and assumptions noted herein.
Webcast Information
Today's event is expected to last
approximately 4.5 hours, and will be livestreamed and available via
webcast on the Petco's investor relations page
at ir.petco.com.
Full
Link: https://ir.petco.com/events/event-details/petco-2022-investor-day
About Petco, The Health + Wellness Co.:
Petco is a
category-defining health and wellness company focused on improving
the lives of pets, pet parents and our own Petco partners. Since
our founding in 1965, we've been striving to set new standards in
pet care, delivering comprehensive wellness solutions through our
products and services, and creating communities that deepen the
pet-pet parent bond. We operate more than 1,500 Petco locations
across the U.S., Mexico and Puerto Rico, including a
growing network of nearly 200 in-store veterinary hospitals, and
offer a complete online resource for pet health and wellness
at petco.com and on the Petco app. In tandem
with Petco Love (formerly the Petco Foundation), an
independent nonprofit organization, we work with and support
thousands of local animal welfare groups across the country and,
through in-store adoption events, we've helped find homes for more
than 6.5 million animals.
Forward-Looking Statements:
This press release
contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 as contained in
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, concerning
expectations, beliefs plans, objectives, goals, strategies, future
events or performance and underlying assumptions and other
statements that are not statements of historical fact, including
statements regarding our fiscal year 2022 guidance, our long-term
financial framework, our growth plans, and execution on our
transformation initiatives. Such forward-looking statements can
generally be identified by the use of forward-looking terms such as
"believes," "expects," "may," "intends," "will," "shall," "should,"
"anticipates," "opportunity," "illustrative", or the negative
thereof or other variations thereon or comparable terminology.
Although Petco believes that the expectations and assumptions
reflected in these statements are reasonable, there can be no
assurance that these expectations will prove to be correct or that
any forward-looking results will occur or be realized. Nothing
contained in this earnings release is, or should be relied upon as,
a promise or representation or warranty as to any future matter,
including any matter in respect of the operations or business or
financial condition of Petco. All forward-looking statements are
based on expectations and assumptions about future events that may
or may not be correct or necessarily take place and that are by
their nature subject to significant uncertainties and
contingencies, many of which are outside the control of Petco.
Forward looking statements are subject to a number of risks,
uncertainties and other factors that could cause actual results or
events to differ materially from the potential results or events
discussed in the forward looking statements, including, without
limitation, the following: (i) increased competition (including
from multi-channel retailers and e-Commerce providers); (ii)
reduced consumer demand for our products and/or services; (iii) our
reliance on key vendors; (iv) our ability to attract and retain
qualified employees; (v) risks arising from statutory, regulatory
and/or legal developments; (vi) macroeconomic pressures in the
markets in which we operate including inflation; (vii) failure to
effectively manage our costs; (viii) our reliance on our
information technology systems; (ix) our ability to prevent or
effectively respond to a privacy or security breach; (x) our
ability to effectively manage or integrate strategic ventures,
alliances or acquisitions and realize the anticipated benefits of
such transactions; (xi) economic or regulatory developments that
might affect our ability to provide attractive promotional
financing; (xii) business interruptions and other supply chain
issues; (xiii) catastrophic events, political tensions, conflicts
and wars (such as the ongoing conflict in Ukraine), health crises, and pandemics,
including the potential effects that the ongoing COVID-19 pandemic
and/or corresponding macroeconomic uncertainty could have on our
financial position, results of operations and cash flows; (xiv) our
ability to maintain positive brand perception and recognition; (xv)
product safety and quality concerns; (xvi) changes to labor or
employment laws or regulations; (xvii) our ability to effectively
manage our real estate portfolio; (xviii) constraints in the
capital markets or our vendor credit terms; (xix) changes in our
credit ratings; and (xx) the other risks, uncertainties and other
factors identified under "Risk Factors" and elsewhere in Petco's
Securities and Exchange Commission filings. The occurrence of any
such factors could significantly alter the results set forth in
these statements.
Petco cautions that the foregoing list of risks, uncertainties
and other factors is not complete, and forward-looking statements
speak only as of the date they are made. Petco undertakes no duty
to update publicly any such forward-looking statement, whether as a
result of new information, future events or otherwise, except as
may be required by applicable law, regulation or other competent
legal authority.
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SOURCE Petco Health and Wellness Company, Inc.