Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) Q2 2023 Earnings Call Transcript August 24, 2023 8:00 AM ET
Company Participants
Cathy Yao - VP of IR
Ron Coughlin - CEO
Brian LaRose - CFO
Conference Call Participants
Oliver Wintermantel - Evercore ISI
David Lance - Wells Fargo
Simeon Gutman - Morgan Stanley
Anna Andreeva - Needham & Company
Steven Forbes - Guggenheim
Seth Basham - Wedbush Securities
Michael Lasser - UBS
Steven Zaccone - Citi
Greg Sommer - Gordon Haskett
Operator
Good morning, everyone, and welcome to Petco's Second Quarter 2023 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please also note, today's event is being recorded.
At this time, I'd like to turn the floor over to Cathy Yao, Vice President of Investor Relations. Cathy, you may begin.
Cathy Yao
Good morning, and thank you for joining Petco's second quarter 2023 earnings conference call. In addition to the earnings release, there is a presentation and infographic available to download on our website at ir.petco.com, summarizing our results.
On the call with me today are Ron Coughlin, Petco's Chief Executive Officer, and Brian LaRose, Petco's Chief Financial Officer.
Before they begin, I would like to remind everyone that on this call, we will make certain forward-looking statements, which are subject to a number of risks and uncertainties that could cause actual results to differ materially from such statements. These risks and uncertainties include those set out in our earnings materials and our SEC filings.
In addition, on today's call, we will refer to certain non-GAAP financial measures. Reconciliations of these measures can be found in our earnings release, presentation, and our SEC filings. And finally, during the Q&A portion of today's call, we ask that you please keep to one question and one follow-up.
With that, let me turn it over to Ron.
Ron Coughlin
Thank you, Cathy, and welcome, everyone. Before I begin, I want to thank our 29,000 Petco partners for their enduring commitment to providing the very best for pets and pet parents. I'm proud of the work our teams deliver every single day. This morning, I'd like to focus my remarks on three key topics. First, I'll briefly review our Q2 results. Second, I'll discuss actions that will generate approximately $150 million in savings, from a combination of run rate cost efficiencies and productivity enhancements by the end of fiscal 2025. These will help drive both gross margin and OpEx with a greater weighting to gross margin. And finally, I'll outline the continued progress we're making on our roadmap for accelerated profitable growth.