David Lane's questions to Petco Health and Wellness Company Inc (WOOF) leadership • Q3 2024
Question
David Lane from Wells Fargo, on for Zach Fadem, asked about the future glide path for gross margin and for context on the 3% decline in the supplies and companion animal segment.
Answer
CFO Brian LaRose declined to provide a forward-looking gross margin guide but emphasized that Q3 improvements from cost actions and services are fundamental, not one-time. Regarding the supplies decline, he reiterated that Petco is in 'self-help mode,' actively improving assortment and costs in the category rather than waiting for the market to recover.