Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) Q3 2023 Earnings Call Transcript November 29, 2023 8:00 AM ET

Company Participants

Benjamin Thiele-Long - Vice President of Corporate Communications

Ron Coughlin - Chief Executive Officer

Brian LaRose - Chief Financial Officer

Conference Call Participants

Oliver Wintermantel - Evercore ISI

Peter Benedict - Robert W. Baird

Simeon Gutman - Morgan Stanley

Steven Zaccone - Citigroup

Michael Lasser - UBS

Steven Forbes - Guggenheim Securities

Anna Andreeva - Needham & Company

Seth Basham - Wedbush Securities

Operator

Good morning, and welcome to the Petco Third Quarter 2023 Earnings Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded.

And now, I'd like to turn the conference over to Benjamin Thiele-Long, Vice President of Corporate Communications. Benjamin, you may begin.

Benjamin Thiele-Long

Good morning, and thank you for joining Petco's third 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 be making 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 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 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

Thanks, Benjamin, and thank you, everyone, for taking the time to join us today. To start, I'd like to express my utmost appreciation to all our Petco partners across the country. Their dedication makes Petco the special place that it is, and this quarter the team worked especially hard to deliver the very best for pets.

In Q3, results were below our expectations, and we're taking swift and decisive action to improve the performance of our business by broadening our appeal with customers and tightly managing costs and capital. This work is already underway and is the top priority for the entire Petco team. This includes progress against the targeted $150 million in run rate savings by the end of fiscal 2025, which we outlined last quarter. We remain on track to deliver $40 million in year one.