Petco CFO sees shift in consumer spending, pressures on discretionary business

“In Q2, we delivered solid top line results and strong free cash flow,” said Petco CFO Brian LaRose. “That said, the shift in consumer spending and pressures on our discretionary business mean we’re revising our guidance accordingly. Looking ahead, we remain focused on debt paydown and cash flow, both of which will be supported by our productivity initiatives in addition to tightly controlled expense management.” “We continue to focus on execution through an uncertain environment, delivering our 19th consecutive quarter of comp sales growth, with ongoing strength in consumables and services, particularly in vet,” said Petco CEO Ron Coughlin. “With discretionary spending continuing to be pressured, we’re taking numerous strategic actions to strengthen our business, including initiatives to unlock a targeted $150 million in cost savings and productivity enhancements by the end of fiscal 2025. These actions, combined with the enduring competitive advantages of our differentiated offering, will position us even better to deliver sustainable and profitable growth for the long term.”