Matt McCartney's questions to Petco Health and Wellness Company Inc (WOOF) leadership • Q3 2024
Question
Matt McCartney of Wedbush Securities, on for Seth Basham, questioned the pricing impact during the quarter and the key drivers behind the improvement in services margin.
Answer
CFO Brian LaRose described the pricing environment as 'rational' but did not quantify the impact. He explained that the 130 basis point gross margin improvement was driven by cost actions and a significant improvement in services gross margin, which resulted from the maturation of vet hospitals, strength in Vetco Mobile clinics, and a strong grooming business.