SAN DIEGO — Petco Health and Wellness Company, Inc., announced its long-term growth and financial strategies during its 2022 Investor Day, which occurred March 23 in New York, N.Y., and online.
"Petco is on one of the steepest growth trajectories in all of retail, supported by our position as the only fully integrated provider of pet health and wellness across products, veterinary and services, digital, and in brick-and-mortar channels," said Ron Coughlin, chairman and chief executive officer, Petco. "We are defining the future of pet parenting in an incredibly high growth and economically resilient category. Our ecosystem is built to capture the market opportunity and positions us as a leader of what we call Retail 3.0. As we build on last year's incredible performance, we're emerging stronger and more confident that our strategic moats position us to compete and win."
During its 2022 Investor Day, Petco provided many updates on its subscription-based loyalty program; testing of “Small Town Rural” concept; expanding its partnership with JustFoodForDogs, including the scaling of its Reddy and WholeHearted brands; investing in a fulfillment network; partnering with other brands like Lowe’s; and receiving the American Humane Certified™ Seal of Approval.
The company also shared its strategy in creating long-term value during its presentation. Petco plans to scale its pet service offerings and provide pet owners access to general and specialized pet health services. The company also plans to provide new and enhanced pet food and products, focusing on premiumization and exclusivity; meet customer’s purchasing needs by using its national network and expanding its fulfillment capabilities; and will launch subscription membership programs, like Vital Care 2.0, to benefit its customers and partners.
Petco’s long-term financial framework is based on high single-digit revenue growth, low double-digit income growth and a net debt-to-adjusted EBITDA ratio of less than 1.9. The company also reaffirmed its 2022 fiscal year targets, which include a revenue of $6.15 to $6.25 billion, an EBITDA of $630 to $645 billion, earnings per share of $0.97 to $1.00, and capital expenditures of $275 to $325 million.
Read more about corporate strategy, financial performance, mergers and acquisitions on our Business page.