Petco Health and Wellness Company, Inc.
- Open
- 2.69
- Day high
- 2.73
- Day low
- 2.65
- Prev close
- 2.71
- Volume
- 327K
- Mkt cap
- $767M
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 0.7
- P/S
- 0.1
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$1.1M over the last 3 months (0 open-market buys, 3 sales)
- 🏛Institutions reducing (13F)
Petco Health and Wellness Company, Inc. (WOOF) is a Consumer Cyclical company listed on NASDAQ. The stock is down 18% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 3 sales (SEC Form 4).
Petco Health and Wellness Company, Inc. (WOOF) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
WOOF earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jun 3, 2026 | $-0.02 | $0.01 | +150.0% | $1.5B | +0.7% |
| Mar 11, 2026 | $0.02 | $-0.03 | -248.0% | $1.5B | +0.1% |
| Nov 25, 2025 | $0.02 | $0.05 | +204.5% | $1.5B | -0.3% |
| Aug 28, 2025 | $0.01 | $0.08 | +700.0% | $1.5B | +1.3% |
| Jun 5, 2025 | $-0.02 | $-0.01 | +50.0% | $1.5B | +0.1% |
| Mar 26, 2025 | $0.02 | $-0.03 | -250.0% | $1.6B | -0.1% |
| Dec 5, 2024 | $-0.04 | $-0.02 | +50.0% | $1.5B | +0.8% |
| Sep 10, 2024 | $-0.02 | $-0.02 | -13.6% | $1.5B | -0.1% |
| May 22, 2024 | $-0.06 | $-0.04 | +33.3% | $1.5B | +1.1% |
| Mar 13, 2024 | $0.02 | $0.02 | +7.0% | $1.7B | +3.4% |
| Nov 29, 2023 | $-0.01 | $-0.05 | -350.0% | $1.5B | -7.9% |
| Aug 24, 2023 | $0.07 | $0.06 | -14.3% | $1.5B | +0.1% |
WOOF insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 10, 2026 | May Hollyofficer: Chief Human Resources Officer | Sell | 200,000 | $2.54 |
| Jul 9, 2026 | May Hollyofficer: Chief Human Resources Officer | Sell | 100,000 | $2.55 |
| Jul 9, 2026 | May Hollyofficer: Chief Human Resources Officer | Sell | 150,000 | $2.55 |
| Jul 2, 2026 | Breitner Camerondirector | Grant | 60,662 | — |
| Jul 2, 2026 | Yen Irisdirector | Grant | 60,662 | — |
| Jul 2, 2026 | BRIGGS GARY Sdirector | Grant | 60,662 | — |
| Jul 2, 2026 | MOHAN RAJENDRA Mdirector | Grant | 60,662 | — |
| May 20, 2026 | Venezia Patrick Jofficer: Chief Revenue Officer | Tax | 26,120 | $2.50 |
| May 5, 2026 | Anderson Joel Ddirector, officer: Chief Executive Officer | Grant | 2,861 | $2.45 |
| Apr 17, 2026 | Insana Giovanniofficer: See Remarks | Tax | 22,308 | $2.80 |
| Apr 17, 2026 | May Hollyofficer: Chief Human Resources Officer | Tax | 41,976 | $2.80 |
| Apr 17, 2026 | May Hollyofficer: Chief Human Resources Officer | Tax | 139,976 | $2.80 |
| Apr 14, 2026 | Insana Giovanniofficer: See Remarks | Tax | 1,549 | $2.84 |
| Mar 17, 2026 | Venezia Patrick Jofficer: Chief Revenue Officer | Sell | 102,029 | $3.42 |
| Mar 17, 2026 | Venezia Patrick Jofficer: Chief Revenue Officer | Option | 58,805 | $2.46 |
Source: WOOF SEC Form 4 filings, latest Jul 10, 2026. For informational purposes only — not investment advice.
See the full WOOF insider & 13F page →Petco Health and Wellness Company, Inc. company profile
Overview
Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) is a comprehensive pet care retailer that was founded in 1965 and went public in January 2021. Headquartered in San Diego, California, the company has evolved from a traditional pet supply retailer into a health and wellness ecosystem for pets and their owners. Operating approximately 1,500 locations across the United States, Mexico, and Puerto Rico, Petco has positioned itself as a one-stop destination for pet care needs, combining retail products with an expanding array of veterinary and wellness services. The company has faced significant challenges in recent years, including leadership changes and profitability pressures, leading to a strategic transformation focused on operational efficiency and margin improvement.
Business
Petco operates in the specialty pet retail industry, which encompasses the sale of pet products and services to pet owners. The pet industry has experienced steady growth over decades, driven by the humanization of pets and increased spending on pet health and wellness. The company's business is organized around three main segments that together create a comprehensive pet care ecosystem. The Consumables segment represents the largest portion of revenue and includes pet food, treats, litter, and other regularly purchased items that pet owners need to replenish frequently. This segment has shown resilience and growth, with consumables representing the most stable revenue stream for the company. Pet food, in particular, benefits from brand loyalty and regular purchasing patterns. The Supplies and Companion Animals segment includes discretionary items such as toys, beds, carriers, leashes, and live animals. This category tends to be more sensitive to economic conditions as these purchases are often deferrable. The segment has faced headwinds in recent years due to economic pressures on consumers and changing pet adoption patterns. The Services and Other segment has become increasingly important to Petco's strategy and includes veterinary care through in-store hospitals, grooming services, training, mobile veterinary clinics (Vetco), and subscription services like Vital Care membership. This segment also encompasses the company's digital platforms and insurance offerings. Services revenue has shown strong growth, up 10-17% in recent quarters, and represents a higher-margin business that builds customer loyalty and increases visit frequency. Based on recent financial reports, consumables likely represent approximately 50-55% of total revenue, supplies and companion animals around 30-35%, and services approximately 15-20%, though the company is actively working to grow the services portion of the business.
Revenue model
Petco generates revenue through multiple channels and business models that leverage its physical and digital presence. The primary revenue driver is product sales through its retail locations and e-commerce platforms, where customers purchase pet food, supplies, and accessories. The company operates on traditional retail margins, buying products from manufacturers and selling them to consumers at marked-up prices. The services business model has become increasingly important, generating revenue through veterinary care, grooming appointments, training sessions, and mobile clinic services. These services typically command higher margins than product sales and create recurring revenue streams. The company also operates a subscription model through its Vital Care membership program, where customers pay annual fees for benefits like discounts, free services, and exclusive access to certain products. Petco's omnichannel approach allows customers to purchase online and pick up in stores, or have products delivered, creating multiple touchpoints for revenue generation. The company also earns revenue through partnerships and exclusive arrangements with pet food manufacturers and service providers. Several factors influence Petco's profitability and margins. Commodity price fluctuations affect the cost of pet food ingredients, directly impacting gross margins on consumables. Supply chain costs, including shipping and logistics expenses, can pressure margins, particularly during periods of inflation or disruption. Labor costs are significant given the company's large retail footprint and service-intensive business model, with recent wage increases to $15 per hour affecting operational expenses. Competitive pressure from online retailers like Amazon and Chewy, as well as big-box retailers and grocery stores selling pet products, can limit pricing power and force promotional activity that pressures margins. Economic conditions significantly impact the discretionary supplies category, as consumers may defer purchases of non-essential pet items during economic uncertainty. Conversely, the humanization trend in pet care, where owners increasingly treat pets as family members, supports premium product sales and services demand, potentially improving margins over time.
Competitive moat
Petco's competitive moat is moderate but faces significant challenges from evolving retail dynamics and well-funded competitors. The company's primary defensive characteristics stem from its physical store network and integrated service offerings, but these advantages are under pressure. The company's physical footprint provides convenience and immediate gratification that pure-play online retailers cannot match, particularly for heavy items like pet food and for services that require in-person interaction. The integration of veterinary services within retail locations creates a unique value proposition that builds customer loyalty and increases visit frequency. Pet owners who use Petco's veterinary services are more likely to purchase products in-store, creating a defensive moat around these customers. However, Petco's moat faces substantial threats. E-commerce competitors like Chewy have gained significant market share by offering convenience, competitive pricing, and subscription services that reduce the need for physical store visits. Chewy's focus on customer service and automated reordering has proven particularly effective in the consumables category, which represents Petco's largest revenue segment. Big-box retailers and grocery stores have expanded their pet product offerings, often at lower prices due to their scale advantages. Amazon's vast selection and Prime delivery benefits pose an ongoing competitive threat across multiple product categories. The company's services integration provides some differentiation, but this advantage is not insurmountable. Standalone veterinary practices, mobile vet services, and other specialized service providers can compete effectively in local markets. The capital-intensive nature of building out veterinary capabilities also limits the speed at which Petco can expand this competitive advantage. Overall, while Petco has built some defensive characteristics through its integrated model, the competitive landscape suggests a narrow and pressured moat that requires continuous investment and operational excellence to maintain.
Risks & safety
Petco's margin of safety appears limited given its financial leverage and operational challenges, though recent improvements in cash flow provide some stability. **Debt and Solvency:** - High debt-to-equity ratio of 2.64x indicates significant financial leverage - Current ratio of 0.85x shows working capital constraints with current liabilities exceeding current assets - Quick ratio of 0.28x reveals limited liquid assets relative to short-term obligations - However, positive operating cash flow of $96 million and free cash flow of $59 million in Q4 2024 demonstrate improving cash generation **Valuation Metrics:** - Trading at 0.85x price-to-book ratio suggests market values company below book value - EV/EBITDA of 13.6x appears reasonable for a retail company, though based on relatively low EBITDA of $68 million - Negative return on equity of -1.2% reflects recent profitability challenges **Other Considerations:** - $166 million in cash provides some liquidity buffer - Company targeting $375-390 million adjusted EBITDA for 2025, representing significant improvement from current levels - Store closure program (20-30 locations) may improve overall profitability but indicates some portfolio optimization needed - Turnaround execution risk remains significant given multiple quarters of losses and margin pressure
Recent development
Over the past few years, Petco has undergone significant strategic transformation driven by leadership changes and operational challenges. The company experienced a major leadership transition with CEO Ron Coughlin stepping down in 2023, followed by interim CEO Mike Mohan, and ultimately the appointment of Joel Anderson as the new permanent CEO. The company has implemented a three-phase strategic transformation. Phase One focused on stabilizing profitability and improving leadership team and culture. Phase Two, currently underway, emphasizes operational improvements including merchandising optimization, vendor negotiations, pricing strategy refinement, and cost efficiency across the organization. Phase Three, planned for late 2025, will prepare for revenue growth through enhanced customer and product approaches, competitive positioning evaluation, and improved omnichannel capabilities. A major focus has been cost transformation, with the company targeting $150 million in run-rate savings by the end of fiscal 2025. This includes streamlining operations, optimizing marketing spend, improving vendor partnerships, and reducing administrative tasks for store managers. The company has also made strategic divestitures, including the disposal of its PupBox subscription business. Merchandising strategy has been significantly overhauled, with the company reintroducing value brands in consumables to meet customer price sensitivity, while simultaneously working to improve gross margins through better vendor negotiations and reduced promotional stacking. The company has focused on optimizing its product assortment and improving in-stock metrics. The services business has been a bright spot, with continued investment in veterinary capabilities. The company expanded its veterinary presence to 90% of pet care centers and added over 1,100 veterinarians. The Vital Care membership program has grown to over 500,000 Premier members, providing recurring revenue and higher customer lifetime value. Recent quarters have shown operational improvements with gross margin expansion of 130-180 basis points and positive comparable sales growth, indicating that the transformation efforts are beginning to yield results.
WOOF company profile · for informational purposes only — not investment advice.
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