Petco Health & Wellness Company, Inc. Stock Price, News & Analysis

Petco Health and Wellness Company, Inc. (Nasdaq: WOOF) has announced the granting of inducement equity awards to its newly-hired Chief Executive Officer, Joel D. Anderson, on July 29, 2024. The awards, approved by independent board members, include:

• 1,492,538 restricted stock units
• 1,492,538 target performance stock units
• Non-qualified stock options to purchase 1,366,121 shares at $5.00
• Non-qualified stock options to purchase 1,381,216 shares at $7.50

The restricted stock units and options will vest over three years, while the performance stock units are tied to Petco's adjusted EBITDA performance from February 2, 2025, to January 29, 2028. These awards were granted outside Petco's 2021 Equity Incentive Plan but follow similar terms and conditions.

Petco Health and Wellness Company (Nasdaq: WOOF) has announced significant leadership changes. Joel D. Anderson has been appointed as the new Chief Executive Officer and elected to the Board of Directors, effective July 29, 2024. Anderson, a 30-year retail industry veteran, is known for his ability to build strong teams and create shareholder value.

R. Michael Mohan, the current interim CEO, will transition to chair a new Board committee focused on value creation initiatives. The company's Executive Chairman, Glenn Murphy, expressed confidence in Anderson's leadership and the opportunities to improve Petco's performance. These changes come at a pivotal time as Petco aims to reposition its business and strengthen its future in the pet health and wellness market.

Petco has released its 2023 ESG report, highlighting significant strides in environmental, social, and governance initiatives. The report underscores Petco's commitment to improving the lives of pets, pet owners, and employees. Key achievements include finding homes for 142,924 pets, administering 2.2 million free vaccines, and donating $33.5 million to local shelters. Petco expanded its veterinary care network to over 280 in-store hospitals and launched a clean grooming label for products and services. Additionally, the Well & Good brand earned the Leaping Bunny certification. On the environmental front, Petco's new recycling program diverted over four tons of LDPE plastic from landfills in six months and aims to divert nearly 150 tons annually. Petco also achieved high rankings in corporate sustainability and equality benchmarks, and promoted continuous learning and development among employees.

Petco Health and Wellness Company announces leadership changes to streamline operations and enhance profitability. James Roth is appointed as Chief Stores Officer, responsible for U.S. and Puerto Rico operations, bringing over 20 years of retail experience from Abercrombie & Fitch. Shari White becomes Interim Chief Merchant, with a background at Perrigo and Target. The changes include eliminating the Chief Operating Officer role, and the departure of Justin Tichy and Amy College. The executive team expands with key strategic roles to facilitate quicker decision-making and implementation of best practices.

Petco Health and Wellness reported its Q1 2024 earnings, showing a net revenue decline of 1.7% to $1.5 billion. Comparable sales also dipped by 1.2% year-over-year but grew 4.1% over two years. The company reported a GAAP net loss of $46.5 million ($(0.17) per share), a significant increase from the prior year's loss of $1.9 million ($(0.01) per share). Adjusted Net Income stood at $(11.8) million ($(0.04) per share), down from $14.9 million ($0.06) per share in the previous year. Adjusted EBITDA dropped to $75.6 million from $111.0 million. Operating Cash Flow was $(8.4) million, a decrease from $37.7 million last year, and Free Cash Flow was $(41.1) million, compared to $(24.4) million. Despite these declines, the company saw growth in its consumables (0.1%) and services (4.2%) sectors.

Petco Health and Wellness Company (Nasdaq: WOOF) has appointed Glenn Murphy as Executive Chairman of the Board of Directors effective immediately.

Murphy will aid in enhancing profitability and driving long-term growth. He will also lead the search for a permanent CEO.

Murphy's extensive retail sector experience includes roles at FIS Holdings, lululemon athletica, Gap, and Shoppers Drug Mart.

As part of his appointment, Murphy has purchased 1,470,589 shares of Petco's Class A common stock for approximately $2.5 million. He will also receive substantial inducement awards including 1,000,000 restricted stock units and stock options for up to 4,250,000 shares.

The Board of Directors will now include eleven members.

Petco Health and Wellness Company, Inc. (Nasdaq: WOOF) will host its first quarter 2024 earnings conference call on May 22, 2024, to review financial and operating performance. The webcast will be available on the Investor Relations page for replay until June 5, 2024.