Full Press Release Details
Petco Health + Wellness Company, Inc. Announces Long-Term
Strategic Priorities as it Shapes the Future of Pet Health and Wellness
SAN DIEGO, March 23, 2022 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.
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:
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:
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 growth 1 | Faster than Revenue | |
| Adjusted Net Income growth 1 | +Low double digits | |
| Net debt-to-Adjusted EBITDA ratio 1 | <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 EBITDA 1 | $630 - $645 million | |
| Adjusted Earnings per Share 1 | $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.
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
About Petco, The Health + Wellness Co.:
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.
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
Investor Relations Contact:
Benjamin Thiele-Long