Petco Health and Wellness (NASDAQ: WOOF) reported Q1 EPS of $0.17, $0.08 better than the analyst estimate of $0.09. Revenue for the quarter came in at $1.4 billion versus the consensus estimate of $1.27 billion.

Fiscal Q1 2021 Highlights:Comparisons are first quarter of 2021 ended May 1, 2021 versus first quarter of 2020 ended May 2, 2020 unless otherwise noted

• Net revenue increased 27 percent to $1.4 billion driven by comp sales growth of 28 percent
• Net income increased $38.7 million to $7.6 million or $0.03 per share, inclusive of $20.8 million of non-cash charges related to the refinancing of the company's term loan and revolving credit facility
• Trailing twelve month net income of $12.2 million increased $101.8 million
• Adjusted Net Income1 increased $60.0 million to $44.4 million or $0.17 per share
• Adjusted EBITDA1 increased 45 percent to $125.7 million
• Trailing Twelve Month Adjusted EBITDA increased 26% to $523.3 million
• Net cash provided by operating activities increased $147.3 million to $115.0 million
• Free Cash Flow1 increased $127.8 million to $67.7 million
• Total debt decreased $1.8 billion or 52% to $1.7 billion driven by the proceeds generated in the company's initial public offering, related recapitalization, and Free Cash Flow1 generation
• Net Debt1 decreased $1.7 billion or 53% to $1.5 billion
• Net Debt1 / Trailing Twelve Month Adjusted EBITDA1 improved 62 percent to 2.9x
• Liquidity of $594.5 million inclusive of $174.0 million of cash and cash equivalents and $420.5 million of availability on revolving credit facility.
• Ended the quarter with 1,453 Pet Care Centers, 137 Full Service Vet Hospitals within Pet Care Centers, and 100 Pet Care Centers in Mexico

"We entered 2021 with momentum, and delivered record quarterly sales in Q1 driven by our strong execution and unique model across digital and in our Pet Care Centers," said Ron Coughlin, Chairman and Chief Executive Officer of Petco. "We're attracting new customers and gaining market share in a growing category through our unique end to end health and wellness ecosystem. There are more pets in homes than ever and the 1.2 million net new customers we gained in the quarter is a multi-year high, that provides an annuity for years to come. The category acceleration combined with a strengthening of our customer base give us confidence to raise our full year guidance."

GUIDANCE:

Petco Health and Wellness sees FY2021 EPS of $0.73-$0.76, versus the consensus of $0.66. Petco Health and Wellness sees FY2021 revenue of $5.475-5.575 billion, versus the consensus of $5.33 billion.

For earnings history and earnings-related data on Petco Health and Wellness (WOOF) click here.