Petco Health and Wellness Company (WOOF) investor relations material

Transformation strategy and progress

• Multi-phased transformation underway: phase one focused on identifying opportunities and rebuilding leadership, now completed.

• Phase two centers on execution, improving EBITDA, and shifting company culture to a winning mindset.

• Phase three, targeted for 2026, will focus on four pillars: store experience, merchandise differentiation, scaling services, and omnichannel growth.

• Test-and-learn approach for new initiatives, with gradual rollouts based on proven results.

Services and competitive differentiation

• Services, especially grooming and veterinary, are key traffic drivers and differentiators, with all vet operations owned and integrated.

• Optimization efforts include improving digital appointment systems, expanding hospital hours, and increasing grooming efficiency.

• Omnichannel strategy leverages stores for fulfillment, enabling same-day and two-hour deliveries, and integrates digital tools for customer convenience.

Store fleet and productivity

• Store count is evaluated based on profitability, market relevance, and lease renewals, with flexibility due to 50% of stores up for renewal in the next two years.

• Closed 25 stores last year, similar number expected this year, with moderation and potential growth by 2027.

• Focus on improving store productivity and four-wall profitability through margin expansion and operational improvements.

• Average store size of 13,000 sq ft considered optimal, with ongoing initiatives to boost sales per square foot.