Sachin Verma

Sachin Verma, on behalf of Michael Lasser, asked what actions beyond the near-term strategies in Canada are needed to bridge the gap to the company's long-term growth algorithm and how processing levels will be stabilized.

Answer

CFO Michael Maher identified accelerating new store growth as the primary strategic lever to achieve the long-term outlook, complemented by improvements in Canada's comp performance. Executive Jubran Tanious added that processing levels will be stabilized by matching them to transaction volumes and making future adjustments more gradually, keeping production within a narrow band to avoid the sharp swings that negatively impacted recent performance.

Sachin Verma of UBS Group AG inquired about current pet adoption trends and their impact on the full-year outlook. He also asked how Petco is ensuring cost reductions are permanent without negatively affecting the customer experience.

Answer

CEO Joel Anderson explained that pet adoption trends are stable and that the company's 2025 financial improvement plan is a 'self-help story' not dependent on category tailwinds. CFO Sabrina Simmons added that the focus is on creating a long-term mindset of cost discipline to leverage SG&A for profitable growth, rather than implementing one-time cuts.

Sachin Verma of UBS Group inquired about current pet adoption trends and their impact on the full-year outlook, and also asked how the company is ensuring cost reductions are permanent without negatively affecting the customer experience.

Answer

CEO Joel Anderson stated that pet adoption trends are stable and that the company's 2025 plan is a 'self-help story' not dependent on category tailwinds. CFO Sabrina Simmons added that the focus is on a cultural shift towards managing SG&A for long-term leverage as sales grow, rather than on one-time cost cuts.

Sachin Verma of UBS Group AG inquired about current pet adoption trends and their impact on the full-year outlook, and asked how Petco is ensuring cost reductions are permanent without negatively affecting the customer experience.

Answer

CEO Joel Anderson stated that pet adoption trends are stable and that the company's 2025 plan is a 'self-help story' not dependent on category tailwinds. CFO Sabrina Simmons added that the focus is on instilling a new mindset for sustainable SG&A leverage, rather than one-time cuts, to build a strong foundation for future growth.

Sachin Verma of UBS Group AG inquired about current pet adoption trends and their impact on the full-year outlook, and also asked how Petco is ensuring cost-saving measures are permanent without negatively affecting the customer experience.

Answer

CEO Joel Anderson stated that pet adoption trends are stable and that the company's 2025 financial improvement plan is a "self-help story" not dependent on category tailwinds. CFO Sabrina Simmons added that the focus is on instilling a new mindset for disciplined SG&A management to achieve long-term leverage and support growth, rather than implementing one-time cost cuts.

Sachin Verma of UBS Group AG inquired about current pet adoption trends and their impact on the full-year outlook, and also asked how the company is ensuring cost reductions are permanent without negatively affecting the customer experience.

Answer

CEO Joel Anderson stated that pet adoption trends are stable and that the company's 2025 plan is a 'self-help story' not reliant on category tailwinds. CFO Sabrina Simmons added that the focus is on a long-term shift in mindset toward cost discipline and SG&A leverage, rather than one-time cuts, to build a strong foundation for future growth and margin expansion.

Sachin Verma of UBS Group inquired about current pet adoption trends and their impact on the full-year outlook. He also asked how Petco is ensuring cost reductions are permanent without negatively affecting the customer experience.

Answer

CEO Joel Anderson explained that pet adoption trends are stable and that the company's 2025 plan is a 'self-help story' not dependent on category tailwinds. CFO Sabrina Simmons added that the focus is on creating a new mindset for disciplined SG&A management to achieve leverage as sales grow, rather than pursuing one-time cost cuts.