Dive Brief:
- Petco on Wednesday announced Joel Anderson was named CEO, effective July 29. He also was elected to the company’s board of directors, according to a company press release.
- Anderson succeeds Mike Mohan, who has been serving in the role on an interim basis since March after Ron Coughlin stepped down from the role after six years.
- The announcement comes one day after Five Below announced Anderson was stepping down as its CEO. Anderson was also previously Walmart.com’s president and CEO.
Dive Insight:
After four months, Petco has found its next permanent leader as it looks to reposition itself.
"Joel is an inspirational leader and a highly experienced retail CEO," Glenn Murphy, executive chairman of the board, said in a statement. "I look forward to working closely with him as he leads Petco's initiatives to improve operating and financial results."
Anderson’s appointment also marks “a key step in the company’s revitalization,” according to Wedbush analysts led by Seth Basham.
In its most recent earnings report, Petco reported net revenue fell 1.7% year over year to $1.5 billion as comparable sales fell 1.2%. Losses widened during the period, with operating loss reaching $16.8 million from a profit of $27.6 million in the year-ago period and net loss widening to $46.5 million from $1.9 million last year.
Those results came on top of a disappointing fourth quarter when the company swung into the red, reporting a $22.6 million net loss from a $32.7 million income the prior year. With the benefit of an extra sales week, Petco’s Q4 net sales rose 6.1% year over year to $1.7 billion, while comps fell 0.9%.
For the second quarter, the retailer projects net revenue to be relatively flat compared to last year and adjusted EBITDA to be about $80 million, a nearly 30% year-over-year decline.
The CEO announcement also comes shortly after the pet retailer made other leadership changes as part of an effort to “simplify decision making, focus on fewer and clearer priorities, and empower the organization to move with greater speed and agility.” Petco in May appointed James Roth, most recently executive vice president of stores for Abercrombie & Fitch Co., to be its chief stores officer. The retailer also named Shari White as its interim chief merchant, succeeding Chief Merchandising and Supply Chain Officer Amy College, who is leaving the retailer next month.
Petco at the time also expanded its leadership team to include Tim Buckenberger as senior vice president of merchandise planning, inventory and supply chain; Steve Janowiak as vice president of digital; and Stephen Reyes as senior vice president of services.
The “changes to our leadership team will accelerate Petco's initiatives to drive retail excellence as we execute on our operational reset," Mohan said in a statement at the time. "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."
