Petco Health & Wellness Company, Inc. reported a decrease in net sales for fiscal 2024, totaling $6.12 billion, down 2.2% from $6.26 billion in fiscal 2023. The decline was primarily attributed to the absence of a 53rd week that contributed $116.6 million to the previous year's sales. Despite this, the company experienced a 0.3% growth in comparable sales, driven by a strong performance in its services segment, which includes veterinary care and grooming. The gross profit for the year was $2.32 billion, reflecting a gross profit margin of 38.0%, an increase from 37.6% in the prior year, attributed to supply chain efficiencies and improved hospital margins.
Petco's operating income for fiscal 2024 was $7.1 million, a significant recovery from an operating loss of $1.18 billion in the previous year, which was heavily impacted by a goodwill impairment charge of $1.22 billion. The net loss attributable to Class A and B-1 common stockholders was $101.8 million, a notable improvement from a net loss of $1.28 billion in fiscal 2023. Adjusted EBITDA also decreased to $336.5 million from $401.1 million, reflecting the challenges posed by inflation and shifts in consumer spending.
In terms of operational metrics, Petco maintained a total of 1,398 pet care centers in the U.S. and Puerto Rico as of February 1, 2025, with no new openings during the fiscal year. The company reported a total employee headcount of over 29,000 partners, emphasizing its commitment to customer service and engagement. The Vital Care membership program, which links pet parents with Petco's merchandise and services, accounted for over 90% of transactions in fiscal 2024, highlighting the importance of customer loyalty initiatives.
Looking ahead, Petco aims to enhance its market position by focusing on expanding its veterinary services and e-commerce capabilities. The company is also addressing the impact of macroeconomic factors, including inflation and changing consumer preferences, by optimizing its product assortment and pricing strategies. Petco's management expressed confidence in its ability to navigate these challenges and achieve sustainable growth, although they acknowledged the ongoing uncertainties in the economic landscape.
About Petco Health & Wellness Company, Inc.
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