Petco has reportedly found its next permanent leader after four months of working to reposition itself. Joel Anderson, former CEO at Five Below, will be taking over as CEO of the pet retailer.
Executive Chairman of the Board, Glenn Murphy, said in a statement, “Joel is an inspirational leader and a highly experienced retail CEO… I look forward to working closely with him as he leads Petco’s initiatives to improve operating and financial results.”
Seth Basham, lead Wedbush analyst, said that Anderson’s appointment also marks “a key step in the company’s revitalization.”
According to the most recent earnings report, Petco’s net revenue dropped 1.7% year-over-year to $1.5 billion. Similar sales dipped 1.2% during the same time, and losses widened. Operating losses reached $16.8 million from a profit of $27.6 million during the same period the previous year. Additionally, net loss widened to $46.5 million from $1.9 million last year.
The results mentioned above came in addition to a more than disappointing fourth quarter as the company fell into the red with a net loss of $22.6 million, compared to a $32.7 million income during the previous year. With the benefit of an extra sales week, Petco’s Q4 net sales rose 6.1% year-over-year to $1.7 billion. Comps fell 0.9%.
The retailer projects net revenue to be relatively flat for the second quarter compared to last year. Furthermore, the Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) is expected to be about $80 million, marking a 30% year-over-year decline.
The announcement of the new CEO comes not long after the pet retailer made other leadership changes in an attempt to “simplify decision-making, focus on fewer and clearer priorities, and empower the organization to move with greater speed and agility.”
In May, Petco appointed James Roth to be its chief stores officer. Roth most recently served as executive vice president of stores for Abercrombie & Fitch Co. Petco also named Shari White its interim chief merchant and has, at the same time, expanded its leadership team to include senior vice president of merchandise planning, inventory, and supply chain, Tim Buckenberger; vice president of digital, Steve Janowiak; and senior vice president of services, Steven Reyes.
Speaking on the most recent leadership changes, Petco has stated on the Health and Wellness Co website, “Today’s changes to our leadership team will accelerate Petco’s initiatives to drive retail excellence on our potential reset,” according to Mike Mohan, who was serving as interim chief executive officer at the time the changes were first announced.
“Across the business, we are streamlining the organization to empower faster and more effective implementation of best practices on the path to restoring our profitability.”
As newly appointed chief stores officer, Roth will report directly to Mohan and lead operations across all Petco centers throughout the U.S. and Puerto Rico.
As interim chief merchant, White will also report directly to Mohan. White joined Petco six years ago and previously served in merchandising and brand management roles at Target and Unilever. Before joining Petco, she worked for consumer products company Perrigo.
