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Pedestrians cross a street in front of a Petco Animal Supplies Inc. store in New York, the United States, Wednesday, September 9, 2020.
Angus Mordant | Bloomberg | Getty Images
Petco Health and Wellness has filed an S-1 for an initial public offering as consumer spending on pets rises during the coronavirus pandemic.
The retailer has yet to share the number of available shares or the price of its IPO. It plans to be listed on Nasdaq with the symbol “WOOF”.
The company noted in its file that the number of households with pets is expected to increase by 4% this year alone, due to the pandemic. The rise in the number of pet owners is creating a new demand of $ 4 billion for pet care products.
Chewy, PetSmart’s online business that went public over a year ago, has seen its shares rise more than 150% so far this year, to reach a market value of $ 30.3 billion. dollars.
In the ten months ended October 31, 2020, Petco’s net sales increased 9% to $ 3.58 billion from the same period a year ago. Comparable store sales have jumped 9.6% so far this year.
Petco is also improving its profitability after reporting net losses in 2018 and 2019. In the first ten months of 2020, the company reported a net loss attributable to members of only $ 20.3 million, reducing its losses from the same period a year ago by 77%.
Over the past three years, after comparable store sales turned negative, Petco has invested $ 300 million to modernize its business, including building an e-commerce site and launching a network of full-service veterinary hospitals.
Five years ago, Petco almost went public, but was instead acquired by private equity firms CVC Capital Partners and the Canadian Pension Investment Board for $ 4.6 billion. The company, which was founded in 1965, was last listed on the stock exchange in 2006.
Read the full S-1 dossier here.
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