Goldman Sachs discusses Chewy and Petco after retail conference

Investing.com -- Goldman Sachs shared updates on pet retail companies Chewy (NYSE: CHWY) and Petco (NASDAQ: WOOF) following presentations at its 33rd Annual Global Consumer and Retail Conference.

Chewy CEO Sumit Singh said the company expects to continue gaining market share and grow faster than the overall pet category. Singh noted the industry backdrop remains stable but pressured.

The company is expanding beyond traditional pet retail into a broader pet care ecosystem. Investments span Chewy Health, Chewy Vet Care, Modern Animal, pharmacy operations, and additional services. These initiatives aim to attract new customers and increase engagement with existing ones.

Singh identified artificial intelligence, automation, and health services as significant long-term opportunities. The CEO said these areas could improve customer outcomes while expanding the company's addressable market and driving operational efficiency.

Petco CEO Joel Anderson and CFO Sabrina Simmons outlined the company's entry into Phase 3 of its turnaround strategy. The focus is shifting from cost reduction to revenue growth.

The company reported positive comparable sales for two consecutive quarters with stable margins. Petco's growth strategy centers on differentiated products, integrated services, omnichannel improvements, and enhanced store experiences.

Petco has reduced debt and strengthened its balance sheet, which management said positions the company for future capital deployment and returns to shareholders.

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