Petco has reported its financial results for the fourth quarter and full year of 2024, showing a mixed performance as the retailer works to strengthen its business. Despite declines in revenue, the company saw positive comparable sales growth and expects significant improvements in 2025.
In the fourth quarter of 2024, Petco's net revenue reached $1.6 billion, a 7.3% year-over-year decline, partially due to the loss of a 53rd week in 2023. However, comparable sales increased by 0.5% year over year. The company's gross profit was $589.3 million, down 2.8% from the previous year's $606.3 million. Petco reported a GAAP net loss of $13.8 million, an improvement from the prior year’s $22.6 million net loss. Adjusted EBITDA stood at $96.1 million, down from $105.3 million last year.
For the full year of 2024, Petco reported net revenue of $6.1 billion, reflecting a 2.2% decline year over year, also impacted by the absence of the 53rd week. Comparable sales rose by 0.3% year over year. Gross profit was $2.3 billion, slightly down from $2.4 billion the previous year. The company recorded a GAAP net loss of $101.8 million, a significant improvement over the $1.3 billion loss in 2023, which included a $1.2 billion non-cash goodwill impairment charge. Adjusted EBITDA totaled $336.5 million, compared to $401.1 million last year. Operating cash flow was $177.7 million, down from $215.7 million, while free cash flow improved to $49.7 million from a negative $9.9 million last year.
Despite financial pressures, Petco remains optimistic about its trajectory. "Our results in the fourth quarter demonstrate the progress we've made to return Petco to retail operating excellence," said Joel Anderson, Petco’s CEO. "While there is more work ahead, I am confident our new leadership team is well-positioned to build on this early momentum, deliver double-digit adjusted EBITDA improvement in 2025, and set the business up for sustainable profitable growth."
Adapted from a press release.
