Ex-Five Below CEO appointed as new leader at Petco
Vibin' Quick Facts:
- Petco announces new CEO Joel Anderson, set to kick off July 29.
- Anderson replaces interim CEO Mike Mohan, who stepped in after Ron Coughlin's departure in March.
- Anderson was previously CEO at Five Below and heads hailed from Walmart.com.
Scoop:
After a four-month hunt, Petco has found its new big kahuna! Joel Anderson steps into the top spot on July 29, aiming to get this pet-loving company back on track.
Glenn Murphy, the board's executive chairman, marks Anderson's appointment as a big win, stating, "Joel's a stoke-inspiring leader with a heap of retail experience under his belt. I'm totally pumped to work alongside him, as he leads Petco's missions to jazz up our financials and customer satisfaction experience."
Analysts from Wedbush weighed in, praising the appointment as a "key move" in Petco's revamp strategy.
Just days before the announcement, Petco skidded a bit. The fur-tastic retailer reported a 1.7% drop in yearly net revenue to $1.5 billion, with comp sales declining 1.2%. To make matters worse, losses expanded during the period, with operating loss reaching $16.8 million—switching from a profit of $27.6 million in the past year. Net loss swelled to a whopping $46.5 million, up from $1.9 million last year.
This disappointing performance came on the heels of a lackluster fourth quarter when Petco recorded a $22.6 million net loss compared to an income of $32.7 million in the preceding year. Despite a 6.1% increase in Q4 net sales reaching $1.7 billion, comps still fell 0.9%.
For the second quarter, the retailer anticipates net revenue to remain fairly flat compared to last year, with adjusted EBITDA estimated at around $80 million—a near 30% dive compared to the previous year.
The CEO appointment is timely, coming only weeks after other leadership changes. In an effort to speed things up, Petco named James Roth as the new chief stores officer. Shari White was tapped as the interim chief merchant, while Amy College, the head honcho of merchandising and supply chain, is on her way out next month.
Petco pulled a "Team Rocket" moment and expanded its baddie—err... leader—team as well. Tim Buckenberger stepped in as senior vice president of merchandise planning, inventory, and supply chain. Steve Janowiak took the post of vice president of digital, and Stephen Reyes became senior vice president of services.
In a nutshell, Joel Anderson is steering Petco through choppy waters, focusing on boosting profits, modernizing in-store tech, and digitizing loyal punk. The new leadership team and tech investments are a clear indication that they're prepared to transform both the customer experience and the company's operational capabilities. Let's hope they've got what it takes to turn the tide. #Petco rescue mission!
- The appointment of Joel Anderson as the new CEO of Petco signals a significant move in the company's war against declining revenues and profitability.
- Expert analysts from Wedbush have hailed Anderson's arrival as a crucial step in Petco's industry-wide effort to Strengthen its financial health.
- With AI and digitization at the forefront, Anderson plans to modernize Petco's retail business by implementing cutting-edge technology solutions.
- The reinforced leadership team, comprising of James Roth, Shari White, Amy College, Tim Buckenberger, Steve Janowiak, and Stephen Reyes, aims to support Anderson in revolutionizing the pet-loving company's operational capabilities for improved health and growth in the business sector.
