Petco Files for IPO Amid Positive Pet-Care Trends
Petco Health and Wellness filed with the Securities and Exchange Commission for an initial public offering as it looks to capitalize on a rise in consumer pet spending during the coronavirus pandemic.
The San Diego pet food and supplies retailer will trade on the Nasdaq under the ticker WOOF.
“Today, we are a complete partner to pet parents, providing expertise, some of the world’s most nutritious pet foods, and the supplies, services, and healthcare our pets need to thrive,” Chief Executive Ron Coughlin said in the Form S-1.
“Unlike our competitors, we literally provide it all in an integrated fashion: premium food, supplies, grooming, training, and a full-service veterinary platform. Additionally, we do it all seamlessly across digital and physical worlds.”
Petco estimates that the industry serves more than 72 million households with pets and represents a total addressable market of $97 billion in 2020.
The pet-care industry has grown at a 5% compound annual growth rate since 2008.
The company expects the number of households with pets to grow by 4% in 2020, which could create up to $4 billion in new demand for pet-care products.
For the nine months through Oct. 31, Petco posted a net loss of a penny a unit, narrowed from a loss of 6 cents in the year-earlier period.
Petco saw revenue increase to $3.58 billion from $3.29 billion through the first three quarters of fiscal 2020. Comparable sales grew 9.6% in the period.
Chewy’s shares have well more than doubled this year. At last check the stock was up 2.4% to $74.39.