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Feb 01
Petco Q4 2024 Earnings Report
Petco reported a decrease in revenue and net loss for Q4 2024.
Key Takeaways
In Q4 2024, Petco's revenue declined by 7.3% year-over-year to $1.55 billion, while it narrowed its GAAP net loss to $13.8 million. Adjusted EBITDA was $96.1 million, reflecting a decrease from the prior year. Operating income improved significantly year-over-year, and gross profit experienced a smaller decline relative to revenue.
Revenue fell 7.3% year-over-year to $1.55 billion due to the loss of a 53rd week in the prior year.
GAAP net loss narrowed to $13.8 million compared to $22.6 million in Q4 2023.
Adjusted EBITDA was $96.1 million, down from $105.3 million last year.
Operating income rose sharply to $17.4 million from $0.2 million a year ago.
Petco
Petco
Petco Revenue by Segment
Revenue by Segment
Products Revenue
CapyFin.comServices and Other Revenue
CapyFin.com Forward Guidance
Petco expects adjusted EBITDA to grow by double digits in FY25 with modest revenue decline.
Positive Outlook
- Double-digit adjusted EBITDA growth expected for FY25.
- Q1 FY25 Adjusted EBITDA projected at $82–83 million.
- Net interest expense expected to remain steady at ~$130 million.
- Capital expenditures forecasted at $130–140 million.
- Focus on sustainable profitable growth and retail operating improvements.
Challenges Ahead
- FY25 net revenue expected to decline low single digits year-over-year.
- 20–30 net store closures expected in FY25.
- Q1 FY25 revenue also expected to decline low single digits.
- Depreciation and amortization forecasted at ~$200 million, putting pressure on operating margins.
- Macroeconomic conditions assumed to remain steady, adding uncertainty to the outlook.
Revenue & Expenses
Visualization of income flow from segment revenue to net income