Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) Q2 2023 Earnings Call Transcript

Ron Coughlin: Thanks for the question, Greg. So from a vet standpoint, we really like the impact it has on the rest of the store. So from a center store lift standpoint, we’ve revalidated the four to five point lift on center store when we put in a vet, which is a great impact. Our locations with vets are growing tangibly faster than the locations without vets. And in terms of traffic, yes, is a very effective traffic driver for us. In fact, 15% of the vet customers are new to Petco. So that’s one of the advantages from that model.

Brian LaRose: Yeah. And on the cost actions, the larger buckets of the cost actions are in merchandise and supply chain, which will impact the gross margin line on an overweight basis. While there’s opportunities in SG&A, we have more opportunities in cost of sales.

Operator: And ladies and gentlemen, with that, we’ll be concluding our question-and-answer session. I’d like to turn the conference back over to Ron Coughlin for any closing remarks.

Ron Coughlin: Thank you for your time and questions. As we close, I want to reiterate that we’re confident in our plan to navigate the current environment, and we remain resolute that we are well positioned to capture the long-term megatrends of the growing and resilient pet category. Thank you.

Cathy Yao: That concludes Petco’s second quarter 2023 earnings conference call. Thank you.

Operator: And ladies and gentlemen, with that, we will conclude today’s conference call and presentation. You may now disconnect your lines.

Cathy Yao: Goodbye.