Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) Q4 2022 Earnings Call Transcript

Ron Coughlin: Yes. Hey, Chris. Thanks for the question. So let me segment it. First, to be clear, consumables continues to be strong, we’re talking about double-digit growth. There was just a piece of research that said that pet parents are twice as likely to come back on their own food as they are their pet’s food. So we don’t see any change and in fact, we continue to preimmunize within our portfolio. So in general, within our portfolio, we continue to preimmunize tied to the humanization trend that’s a decade long trend. It continues today, so we see strength on that. We see strength on services. From a supply standpoint, you see the discretionary spend, you’re seeing it across different categories. We did see a sequential improvement this quarter.

We have gone back and analyzed prior recessionary times and the behavior looks pretty similar. We saw an improvement when gas prices backed off. So there’s lots of different dynamics in it. But if you look at past recessions, it’s about a five to six quarter dynamic. But overall, pet demand remains strong. As I said, it remains above supply, so that’s — the dynamics are positive, it’s just the discretionary piece that is cyclical.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Ron Coughlin for any closing remarks.

Ron Coughlin: Thank you, operator. To our analysts and our investors, as always, we’re (ph) for your time and your support. Pet category remains resilient and it’s a growth category. We remain committed to executing throughout this environment, while simultaneously making progress against our long-term strategic growth priorities. We look forward to updating you throughout the year on our continued progress.

Cathy Yao: That concludes Petco’s fourth quarter €˜22 earnings conference call. The team will be available after the call if you have any follow-up. Thank you.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.