Petco Health and Wellness Company, Inc. Class A Common Stock Goldman Sachs Global Consumer and Retail Conference

Hey, everyone. Going to get started. Good afternoon. Thank you for joining us. It is my pleasure to introduce Petco and moderate our fireside chat. Today we have with us Joel Anderson, Chief Executive Officer, and Sabrina Simmons, Chief Financial Officer. Thank you for joining us today.

Thank you, Katharine. I feel like you guys have so much going on, and it is kind of fun being here a year later, because you came last year, and you were still in your phase one, entering phase two last year, and now we are fully into phase three of your new strategy.

Yes. I thought we could maybe start there, just now that you are in the Reach for the Sky, phase three, shifting from cost cutting to driving top line growth, what are some early signs that you are seeing that is allowing you to get more confidence in the story?

Well, I would start by saying I would be remiss if my person next to me didn't remind me that phase two never goes away.

That is right. You are always focused on efficiency and getting better there.

It is much more fun to talk about phase three, right?

Getting back to growth, right? We call it Reach for the Sky. I think so much of our growth, Katharine, was really trying to figure out how is Petco different?

How do we differentiate ourselves? Through that, four pillars emerged, and behind that, several building blocks. While we are still in the very early innings of it is nice to now have reported two quarters in a row of positive comps.

Doing so with healthy margins. I feel like we are a really nice balance and making a lot of good progress on it.

Talking about the differentiation, the pet space is so fragmented still, I feel like. Maybe could you walk us through, you have the four pillars, but maybe in terms of as you discover things along the way, what do you think is some of the key parts of the differentiation of Petco versus everyone else?

Yeah. We will start with that we have services.

What is unique about our services is that they are wholly owned, so grooming, hospitals, they are all part of Petco. I think one of the mistakes we made in the past was that we kind of ran them separately. One of the things we have uncovered is bringing it all together one Petco way. That really allows our groomers now to see what product they are buying or for our veterinarians to recommend product. That is just one example, but it is an example of it is a point of differentiation we were not taking advantage of. You look at our companion animal business, we are the only national retailer that does saltwater fish, as an example. So we have got a real big focus on differentiation, both in the services side and the product side. Those are just a couple of real good examples.

Yeah. I know when you first came into the role, you were very excited about vet and services in general, because at a minimum, it is a traffic driver.

Right. So maybe what are some of the improvements you have made in those services in particular?