Petco Health and Wellness Company Inc (WOOF)

Business Description

Petco Health and Wellness Company, Inc. (WOOF) is a pet health and wellness company dedicated to improving the lives of pets, pet parents, and its partners. The company operates through an omnichannel ecosystem, offering a wide range of products and services, including pet food, supplies, veterinary care, grooming, and training. With over 1,500 pet care centers and a growing network of veterinary hospitals, Petco provides a comprehensive solution for pet health and wellness needs.

Consumables - Offers a variety of pet food and treats, focusing on health-oriented options free from artificial ingredients to meet pets' nutritional needs.
Supplies and Companion Animals - Provides pet care supplies, accessories, and live companion animals, catering to the diverse needs of pet parents.
Services and Other - Includes veterinary care, grooming, training, and membership programs like Vital Care, as well as prescription and insurance offerings.

Key Metrics

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Leadership

Name	Position	External Roles	Short Bio
Brian LaRose Executive	Chief Financial Officer	Board member and Treasurer of the National Foundation for Autism Research	Brian LaRose joined Petco as CFO in August 2021. He has extensive experience in financial operations and previously worked at HP.
Giovanni Insana Executive	Chief Legal Officer and Secretary	None	Giovanni Insana joined Petco in January 2021 and became Chief Legal Officer in October 2023. He has a background in securities and M&A legal matters.
Holly May Executive	Chief Human Resources Officer	None	Holly May joined Petco as CHRO in February 2024. She has held significant HR leadership roles at Walgreens Boots Alliance and Abercrombie & Fitch.
James Roth Executive	Chief Stores Officer	None	James Roth was appointed Chief Stores Officer in May 2024. He has over 20 years of experience in senior retail roles, previously at Abercrombie & Fitch.
Joel D. Anderson Executive	Chief Executive Officer	Director of Sprouts Farmers Market	Joel D. Anderson was appointed CEO of Petco in July 2024. He previously served as CEO of Five Below, Inc., where he led significant growth and expansion.	View Report →
Shari White Executive	Interim Chief Merchant	None	Shari White was appointed Interim Chief Merchant in May 2024. She joined Petco from Perrigo and has experience in merchandising and brand management.
Cameron Breitner Board	Director	Senior Advisor at CVC; Board member of Advantage Solutions Inc., Worldwide Express/GlobalTranz, and CFGI	Cameron Breitner has been on Petco's board since 2016 and has extensive experience in private equity.
Christy Lake Board	Director	Chief People Officer at Twilio	Christy Lake has been on Petco's board since 2018. She has held HR leadership roles at Twilio, Box, Inc., and Medallia.
David Lubek Board	Director	Managing Director at CPP Investments; Board member at Qualtrics; Board Observer for Ziply Fiber	David Lubek joined Petco's board in June 2023 and has a background in private equity and corporate governance.
Gary Briggs Board	Director	Board member at Etsy and Combe, Inc.	Gary Briggs has been on Petco's board since 2018 and is Chairperson of the Nominating and Corporate Governance Committee. He has extensive experience in marketing and brand management.
Glenn Murphy Board	Executive Chairman of the Board	Board member of Wella Company and Aimbridge Hospitality	Glenn Murphy has over 30 years of global retail experience and is the founder and CEO of FIS Holdings Ltd. He was appointed Executive Chairman of Petco in May 2024.
Iris Yen Board	Director	Chief Strategy and Transformation Officer at Wella Company	Iris Yen joined Petco's board in June 2023. She has held significant roles at NIKE, Inc. and Gap Inc..
Mary Sullivan Board	Director	Senior Managing Director & Chief Talent Officer at CPP Investments	Mary Sullivan has been on Petco's board since 2021 and has extensive experience in HR leadership across various industries.
Nishad Chande Board	Director	Partner at CVC	Nishad Chande has been on Petco's board since 2016 and is a Partner at CVC, focusing on consumer and business services.
R. Michael Mohan Board	Board Member	Chairman of Bloomin’ Brands, Inc.; Board member of VIZIO Holding Corp. and Jackson Family Wines	R. Michael Mohan served as Interim CEO until July 2024 and remains on the board, leading a committee focused on value creation.
Sabrina Simmons Board	Director	Board member of Columbia Sportswear Company, Coursera, Inc., and Moloco, Inc.	Sabrina Simmons has served on Petco's board since 2021 and is Chair of the Audit Committee. She has a strong background in financial leadership.

Questions to Ask Management

Given the competitive market and your focus on cost reductions, can you provide specific details on the quantifiable cost-saving opportunities you've identified, and how much of these savings will need to be reinvested to drive sustainable same-store sales growth?
With supplies and companion animal sales still declining but improving sequentially, can you elaborate on which specific subsegments are driving this trend and what strategies you're implementing to accelerate growth in these discretionary categories?
Considering your previous decision to slow down vet hospital rollouts to strengthen the balance sheet, what is your updated timeline for expanding the vet hospital network, and how do you plan to balance this investment with your free cash flow objectives?
As competitors report positive trends in pet adoption, how does your internal data align with these observations, and what initiatives are you undertaking to capitalize on potential inflections in pet ownership trends?
Given the importance of pricing strategy in a competitive environment, can you discuss the impact of pricing on your recent quarter's performance and how you plan to manage pricing and product mix to maintain margins while staying competitive?

Recent Mergers & Acquisitions

Notable M&A activity and strategic investments in the past 3 years.

Company	Year	Details
GSSB Corporation	2024	Acquired 1,470,589 shares of Petco’s Class A Common Stock at $1.70 per share, totaling $2.5M, via a private placement exemption; the deal included binding holding periods (50% for at least 2 years and 50% for at least 3 years) and received approval from Petco’s Audit Committee and Board.
Scooby Aggregator, LP	2024	Participated in the same stock purchase agreement as GSSB Corporation, acquiring shares with identical terms including the 50%/50% holding period structure and necessary board approvals, thereby aligning with the strategic financing and ownership goals of Petco’s leadership.
Remaining 50% Stake in Veterinary Joint Venture	2022	Petco acquired the remaining 50% stake in its veterinary joint venture for $35.0M, thereby making it a wholly owned subsidiary; the integration costs were recorded in both cost of sales and selling, general and administrative expenses during the 2022 fiscal periods.