Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) Q3 2022 Earnings Call Transcript

Brian LaRose: And then on inventory, Anna, let me just hit a couple of things. I was really pleased with the way the team has did play this quarter, how the balance sheet land and where it is while improving in-stocks quarter-on-quarter and year-over-year was really an exceptional job. I would tell you that historically, I am not going to give a number for Q4, but typically, what you would see in Q3 and Q4, it’s a bit of an inventory decline as you build up inventory going into the strong holiday season, sales are typically elevated in Q3 and Q4 and then inventory normalizes. When you think forward-looking on €˜23, I would tell you that throughout €˜22, our units in inventory have remained relatively in line with revenue growth. The increase in dollars is driven by inflation. So, as inflation normalizes on the balance sheet and units stay in line with sales, I think that’s when you start to see things come converge a little bit closer.

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, thank you, as always, for your time and your support. Petco is a growth company, which continues to build momentum in an exceptional category with tangible competitive advantages. We remain committed to delivering against our long-term strategic priorities with purpose-driven performance. Thank you, and happy holidays from all of us at Petco.

Benjamin Thiele-Long: That concludes Petco’s third quarter 2022 earnings conference call. The team will be available after the call if you have follow-up questions. Thank you. Happy holidays.

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