Petco (WOOF) Q1 2025 Earnings Call Transcript
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When discussing Petco Health & Wellness (NASDAQ:WOOF), Simmons confirmed operating profit reached $16.4 million for Q1 2025, a $33 million improvement in operating profit from last year when including disposition costs, aided by expense leverage and margin expansion. Anderson detailed that strategic resets in product assortment, such as raising dog food shelves to increase capacity by more than 10%, commenced ahead of last year, supporting both operational efficiency and customer experience improvements. Simmons reiterated Petco's ability to maintain its full-year outlook even while absorbing current tariff levels, highlighting progress in both direct and indirect cost containment. Anderson noted that services have outpaced supplies, citing the ongoing positive impact of needs-based categories and service software enhancements on in-store traffic and retention. The company is prioritizing transaction growth as its main traffic driver by evolving its marketing message and completing assortment and operational resets.
Source Fool.com
