Petco Health and Wellness Company, Inc., which runs more than 1,500 Petco locations throughout the U.S., Mexico and Puerto Rico, said its net revenue surged by 27 percent to reach $1.4 billion in fiscal Q1 2021.
In announcing its financial results on Thursday (May 20), the pet care retailer said that its adjusted net income grew by $60 million from the same quarter last year to $44.4 million, or 17 cents per share. It also reported that adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) soared by 45 percent to $125.7 million.
“We entered 2021 with momentum, and delivered record quarterly sales in Q1 driven by our strong execution and unique model across digital and in our Pet Care Centers,” Petco Chairman and CEO Ron Coughlin said in the company’s earnings announcement.
Petco forecasts revenue of between $5.475 billion and $5.575 billion for fiscal year 2021, up from the previous guidance of between $5.25 billion and $5.35 billion.
“There are more pets in homes than ever, and the 1.2 million net new customers we gained in the quarter is a multi-year high that provides an annuity for years to come. The category acceleration combined with a strengthening of our customer base give us the confidence to raise our full-year guidance,” Coughlin said.
Whether it’s Wagable or Walmart, Cat Person or Chewy, the mix of retailers and services aiming to take a slice of the $100 billion pet care industry has never been larger. With an estimated 11 million additional pet owners today compared to pre-pandemic, the trend is not only set to rise, but will also likely change as the legions of cat and dog owners begin to ease back into their past routines.
“We are bullish for the coming year, projecting [pet care industry] growth of 5.8 percent — well above the historical average of 3 to 4 percent,” American Pet Product Association (APPA) CEO Steve King said of the group’s State of the Industry report.
And in the era of increased dog and cat adoption, General Mills is buying the pet treats unit of Tyson Foods for $1.2 billion, as previously reported. “Pet food is a high-growth category, fueled by the humanization of pets, a trend that has only increased during the pandemic,” General Mills Pet segment Group President Bethany Quam said in an announcement earlier in May. “By adding these trusted pet treat products to our portfolio, we are strengthening our position in this attractive category.”