Lauren Hang's questions to Petco Health and Wellness Company Inc (WOOF) leadership • Q2 2024
Question
Lauren Hang, on for Simeon Gutman, asked how the company plans to fund its strategic initiatives like merchandising and labor investments. She also inquired about the service and vet attach rate among pet owners and how it could be improved.
Answer
CFO Brian LaRose clarified that the initiatives are designed to be self-funding, targeting $150 million in run-rate savings, which creates capacity rather than requiring new investment. Regarding services, he did not provide a specific attach rate but emphasized that the services business is a key strength and differentiator, with grooming being resilient and the vet business growing at a multiple of the overall services segment.