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We've updated our guidance to revenue of $6.15 billion to $6.275 billion, which is unchanged
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Transcript
2023 Q2
25 Aug 23
Categories like apparel, crates and toys remain soft as consumers slowed spending in these products
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2023 Q2
25 Aug 23
We will complement the product moves with targeted pricing actions to address competitive gaps in key traffic driving brands and SKUs
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2023 Q2
25 Aug 23
This includes reintroducing the number one selling cat food brand, Fancy Feast, this week, something both our customers, and pet care center teams are very excited about, as well as Diamond Naturals
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2023 Q2
25 Aug 23
as well as the pricing actions we're undertaking to ensure we're price competitive on key products and SKUs
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2023 Q2
25 Aug 23
With food, we also continue to see a bifurcation among pet parents, with ongoing migration to more premium foods on the one hand and an uptick in value seeking behaviors amongst the second cohort
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2023 Q2
25 Aug 23
was primarily due to the mix impact of strong consumables sales and lower supplies and companion animal sales during the thirteen and twenty-six weeks ended July 30, 2022. While the strong consumables mix impacts the gross margin rate, the average consumables customer has a higher lifetime value than most other categories of customer. Sales channel impacts driven by strength in our digital and services business, moderate increases in distribution costs, and one-time integration costs relating to the purchase of the remaining stake in our veterinary joint venture also contributed to the decrease in gross profit rate during the thirteen and twenty-six weeks ended July 30, 2022 as compared to the prior year periods.
毛利率变化原因
10-Q
2022 Q2
1 Dec 22
Our total sales mix remains strong, led by continued momentum in consumables and services, whose customers shop more frequently and have among our highest long-term value. This growth is slightly offset by a decrease in supplies and companion animals driven by softening in discretionary spend associated with the current inflationary macroeconomic environment and the lapping of a stimulus-driven prior year. We have made certain pricing actions to offset cost increases during the twenty-six weeks ended July 30, 2022.The increase in consumables sales between the periods was driven in part by the increase in new pets, our strategic investments in customer acquisition and retention, continued expansion of our product assortment and a shift to more premium consumables, as well as fresh and frozen food. The decrease in supplies and companion animals is due in part to a strong stimulus driven twenty-six week period ended July 31, 2021 and a decrease in spending on certain non-essential items. The increase in services and other was due in part to the increase in new pets, growth in our membership offerings like Vital Care, and growth in our veterinary hospital business in which we now operate over 200 veterinary hospitals – an increase of over 50 since July 31, 2021.
营收增长原因
10-Q
2022 Q2
1 Dec 22
We have favorable in-stocks versus a year ago that are tangible right now that turn green probably 6 to 8 weeks ago.
And so our inventory position should be a contributor to growth and is a contributor to growth already. And as Brian cited, we don’t feel like we’re over-inventoried in any places or any tangible places but we feel like we have the right inventory in the right places.
You always have episodic vendor type issues but just getting ahead of kind of a current conversation, our exposure to China is very low. We actually moved a lot of our sourcing away from China on supplies several years ago, and that is serving us well, should China have any issues with a kind of relapse of COVID.
inventory-china
Transcript
2022 Q3
1 Dec 22
Let me get into the mix first.
If you look at the presentation that we posted online, you can see that combined between the services and the consumables categories, that’s about 60% of our mix. And within that, those are largely non-discretionary.
If you look at the growth rates this quarter, 12% consumables, double digits in services, those remain very strong.
Within the remaining 40%, not all of it is discretionary and what we believe is that a lot of the purchases today are being delayed.
And some of those purchases are going to come back.
So not entirely, that 40% category is discretionary. A portion of it is and we fully expect that growth to return.
Ron Coughlin
And with regards to the stable, I would call it stable with hopeful signs with green shoots, meaning we launched a supplies perks program.
We have – we’re very happy with the sign-ups on the Supplies perks program. It takes a little while on our perks program. We know that from food and grooming for those customers to come back and redeem, but we’re very happy with the sign-ups there. And then secondly, we’ve taken some actions on companion animals that are showing early signs.
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2022 Q3
1 Dec 22
As I mentioned on the call, the margin pressure in the business is primarily due to the transitory mix pressures. And in fact, mix alone accounted for more than the year-over-year decline in gross margin, which was partially mitigated by improvements in underlying aspects of the business. Digital, we’re driving distribution savings through limiting split shipments and also scaling ad work. We’ve also opened a distribution center that will serve as a hub for internationally sourced inventory and get us efficiencies over time. I’d also say for this quarter and as we discussed last quarter, previously capitalized freight costs impacted gross margin this quarter sequentially as they begin to cycle through the P&L. And then the consumables business is really strong, as you touched on. And while we’ve seen softness in those discretionary categories through prior economic downturns, those categories experienced softness, but rebounded as the economy improved with strong growth. And just case in point, our discretionary categories are up more than 20% from pre-pandemic levels. And we would expect those to return as the economic environment stabilizes and help gross margins
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2022 Q3
1 Dec 22
ood inflation is probably a pretty big driver of the increase in consumables as a percentage of sales
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2022 Q3
1 Dec 22
As we have done for the last year, we continue to proactively carry out programmatic cost initiatives that allow us to mitigate headwinds while also staying ahead of consumer reaction to the macroeconomic environment in the short and long-term. These initiatives range from strategic investments such as our recently opened distribution center that will serve as a hub for internationally sourced inventory and generate efficiencies over time to more tactical improvements, including limiting split shipments and weight overages and shipments from store enabled by alerts through partners’ handheld Zebra devices. SG&A as a percent of revenue improved from 36.9% to 36.6% year-over-year, down 30 basis points. On an absolute basis, SG&A expense was $550 million, up $17 million or 3.1% from prior year, including continued investments in our pet care center partners as we continue to take both a short- and long-term view of managing costs, enabling us to improve retention and positioning us to invest strategically and sustained future growth. Q3 adjusted EBITDA was $138 million, a decrease of 70 basis points from prior year, with an adjusted EBITDA margin rate of 9.2% compared to 9.6% in the prior year a decline of 40 basis points. Q3 adjusted EPS was $0.16, a decrease of $0.04 from the prior year based on 266 million weighted average fully diluted shares and a normalized effective tax rate of 26%.
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2022 Q3
1 Dec 22
Looking at the quarter specifically, net revenue was $1.5 billion, an increase of 4% year-over-year, comparable sales driven by sustained strength in average basket trends grew 4% year-over-year and 20% on a 2-year stack. Total services grew 14% year-over-year, translating to 38% over a 2-year stack driven by strength in Vet and Grooming and buoyed by operational synergies and enhancements in our online and in-store booking systems. In merchandise, strength in consumables, which were up 12% year-over-year and 33% over a 2-year stack offset the transitory impact of discretionary purchasing in supplies and companion animals. Consumables customers, including Fresh Frozen, continue to be among our highest value customers in terms of both spend and trips.
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2022 Q3
1 Dec 22
Specifically, RX, including prescriptions and food, grew almost 50% year-over-year, driven largely by repeat customers. Consumables strength continues to offset the transitory pressure on supplies, the combination of which weighs on gross margin.
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2022 Q3
1 Dec 22
Turning to merchandise. Consumables continue to surge, growing 12% year-over-year and 33% over a 2-year stack. Consumables customers also continue to deliver an elevated LTV over other customers. The key driver of growth in consumables remains our differentiated assortment. Sales in both RX and Fresh Frozen grew year-over-year.
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2022 Q3
1 Dec 22
Now with over 400,000 active Vital Care members, an increase of 42% quarter-over-quarter and over 200% year-over-year, we are even more confident that we have designed the right offering for pet parents sitting at the intersection of value and loyalty
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2022 Q3
1 Dec 22
The appeal of our unique model and power of our marketing engine enable us to add over 325,000 net new customers in the quarter, bringing our total active customer base above 25 million. Recurring customer revenue, driven by repeat delivery, insurance and Vital Care, grew by 56% year-over-year. High-value multi-category customers also grew in the quarter. Contextualize, our sales and customer growth is driven by high value customers returning to shop for premium food and supplies who like our value-oriented customers are also leaning into our loyalty and membership programs.
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2022 Q3
1 Dec 22
This growth is slightly offset by a decrease in supplies and companion animals driven by softening in discretionary spend associated with the current inflationary macroeconomic environment and the lapping of a stimulus-driven prior year.
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10-Q
2022 Q2
2 Sep 22
there's a transitory mix pressure in terms of consumables growth impacting gross margin. There are also some elements of supply chain, in particular, freight that impacted gross margin
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2022 Q2
28 Aug 22