Petco Q4 2024 Earnings Report
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
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