17 Burst results for "Ron Coughlin"
Bloomberg Radio New York
"ron coughlin" Discussed on Bloomberg Radio New York
"Trainers. And get his attitude in the right place. We also have repeat delivery. And I repeat delivery is businesses growing significantly ahead of the competitor that you mentioned. That's part of our recurring revenue plays and recurring revenue is important in terms of line of sights revenue. So our recurring revenue customer growth was 54%. So it was very, very strong. We love those customers because it's a guaranteed customer and very sticky. Well, that's what I'm curious about retention in time. And so it sounds like once you've got somebody within the petco network, they tend to stay. Or do they? We've had very strong retention. The dynamic right now is we continue to bring in new customers. So one of the strengths in the quarter was we brought in 325,000 new customers into our franchise. The competitor that you mentioned customers last quarter. Is that unusual that number? We had, this is our 14th consecutive quarter in a row, adding customers. So we've continued to add customers, which speaks to the strength of our model, and our marketing. Well, how often is it you bring somebody in for either a vet visit or some grooming and they're going to buy something. When we put a vet hospital in one of our stores, we get a four to 5 point center store lift in merchandise. That's despite taking out 2500 ft² of merchandise footage. But we still get a four to 5 point lift because of the traffic and also because of the type of customer that is going in to see a vet. They're the higher end customers. How many stores do you have today? Yeah, around 1450. And they're all U.S., right? We have we're number one in Mexico. Online offline. And then we have an initiative with Canadian tire for some stores and stores. Okay, so how do you, how do you see your store count as a part of your growth story? Are we adding stores here is our geographic areas you need to get into or muscle up in? Yeah, so we've done the culling where there was less profitable. And now we're back into a growth mode. We'll add 15 in the back half of this year, partially those small town rural stores that I talked about, which we're very excited about. It's an $8 billion addressable market for us. And some high growth geographies. Are you guys competing, increasingly with other private equity? Because it does, I feel like I know my vet, who used to be a stand-alone, has been swooped up in these networks of vets. There's been a lot of private equity actions in the vet space, which gives us our opportunity because there's very high multiples being paid for those vets. So after you pay that kind of money, then there's a lot of pressure to upgrade efficiency. They're not as much fun. I'm going to tell you, after no offense, the PE guys. Well, we love our P. I know you too. I know you do. I know you do. I know you. But that said, we have a different approach. We allow the vets to practice medicine as they see fit, which is important. One thing I want to ask you, where's growth going forward? Because you do have some international exposure, Ron. So where do you continue to grow? Yeah. We have $40 billion addressable market that we're just leaning into. So if you look at the vet market, it's a $30 billion market. We only have 200 stores so far. We have, we said we're going to get up to 708 hundred vets. So that's one area. The second thing is small town rural. I talked about an $8 billion market. That is exploding from a population standpoint, our first store is doing very, very well. You'll see us lean into that. Third is Rx. Rx is a scale addressable market. Again, and it's a mess in general. I think there's ways to make it easier, right? Exactly right. And provide a holistic solution there. And then the last thing I would say is insurance. Insurance, if you go to Europe, insurance is about 10% penetrated for pet parent. Here it's two to 3% penetrated. So we have an offer. It's growing double digit, but we can go even faster and we'll have some news shortly on that front. When you look at what seems to be conflicting signals around within our economy, whether it's labor data or labor data seems to be very strong. But you see continued weakness within the housing market and other areas. How do you see it or how does it how does it kind of factor what you do in terms of your longer term strategy at the company? In terms of the hearing now navigating through choppy waters. Our plan is to navigate through what we assume are going to be similar economic environment to today. We're not economists who say, okay. Well, let's assume we're going to this is going to be steady state for 6, 12 months. How would we navigate through that? And that's part of the revised conservative guide that we put out today was let's make sure that in this environment, we can deliver or over deliver. From a long-term strategy standpoint, our long-term strategy is a winner. The category is going to grow 7%. We continue to gain share in areas like super premium, gain share and vet gain share in digital. Basically, where all the profit pools are. That's petco chairman and CEO Ron Coughlin, Bloomberg's Paul Sweeney, joining us there as well. And we had a long in depth conversation. So go to our podcast feed to hear it in its entirety. And that wraps up the first hour of the weekend edition of Bloomberg businessweek from Bloomberg radio. I'm Carol massar. And I'm Tim stenbeck. I had in our next hour, we're focusing on venture capital. We hear from the CEO
Bloomberg Radio New York
"ron coughlin" Discussed on Bloomberg Radio New York
"Quick takes Tim Steinbach from Bloomberg radio. Shares of petco sold off following earnings this week after the company cut its adjusted earnings per share and net revenue guidance for the full year. An analyst at Baird called the pet health and wellness giants forecast reset quote much needed. So to find out more about the company's miss and where it goes from here amid persistent inflation and a tight labor market, Bloomberg surveillance co host Paul Sweeney and I spoke with petco chairman and CEO, Ron Coughlin. Great companies bro, even in tough economies. So we had a 4% comp, which is a good number. We did not have the inventory issues that other companies are talking about most researchers are talking about inventory, excess inventory and having to discount. We didn't have that situation. We continue to see a positive mix shift towards premium and super premium brands. So a lot of good news, but at the same time, there is some pressure from the inflation on discretionary items like toys, tennis balls, leashes, and that pressures that's our highest profit area, so that puts some pressure on the P and L. So in your P and L on your P and L, talk to us about inflation in terms of your cost of goods sold. Where do you guys see it in your P and L? Yeah, so freight would be a big one. Labor would be another one labor. We pretty much have in our model, but I don't think anybody had the freight freight inflation that we saw in their model because the gas really popped in March April type time. Coming down is it helping you? It's starting to come down, but the freight gets tied to the inventory. So it doesn't show up in the P and L till later in Q three and into Q four. I actually have been in a store on second avenue, bought a bunch of toys. I want to do shout out to generally, who was really lovely because I have a dog, a puppy that shoes through things in 30 seconds. So I came up with an armful of toys, and I said, help me help me, what's gonna last, and she was really wonderful. I have to say though, I noticed a lot of empty shelves. And I was curious in the dog toy area. Is it supply chain problems? What was it, or is it just people, I don't know, it looked like you were sold out. You know, there's not a single vendor that said, I think there's gonna be a million new pets in 2020 and other million new pets in 21 and elevated pets this year. So all of the vendors have been scaling their manufacturing. The bad news is that the supply lag, the demand, the good news is that supply and capacity is coming up now. I was in a brand new plant in Dallas for honest kitchen. Hills just announced major investments in their manufacturing. So that capacity really takes about two years to get new capacity up and that capacity is coming up now. We're seeing improving supply week after week. Talk to us about the demand side of this business that pet business. It seemed like during the pandemic, a lot of folks went out and got themselves a pet a cat, a dog, something like that. I'm not sure where those owners are today where those pets are today, but how did that impact your business and how are you dealing with it today? Well, if you look at our business, we're up 34% on a three year basis. Our econ business is up a 140%. Services business up 60%. So we have scaled tremendously on the back of that. But make no mistake about it. Today, 2022, the predictions are for it to still be elevated in terms of petted options versus 2019 pre-pandemic. And those stories about there being more relinquishments are really just stories. Relinquishments are below pre-pandemic. So the supply of pet and the pet universe is only growing. And we tend to do better in terms of capturing more than our fair share of new pets. So why don't you guys pull in your guidance? It's really that pressure on disposable income. That's it. And supplies. If you look at our food, our food's up double digits. Yeah. You look at our growth or sales. You look at our services, up double digits. It's really that segment of supplies, toys, balls, leashes, collars, that kind of thing. The rest of the business is highly, highly recession resistant. And as I said, we continue to trade up whether that's in food to premium kibble or fresh frozen, or even our ready fashion brand. That was up double digit, which is kind of a higher end supplies brand. Do you talk recession at all? Of course we do. We have to plan for every eventuality. Do you expect it? A story the other day, 70% prediction of recession. So we need to be planned for that. So we're doing two things. One is making sure that our cost structure is prepared to navigate through that. And the second thing is what does that mean? There's hiring components. There's location components, there's travel components. You cut back and all the areas that aren't revenue generating, direct revenue generating, to make sure that if your revenue is impacted, your cost structure is not in line with not out of line with your revenue profile. The second piece, though, is making sure you're more attractive to customers who are going through a recession, right? So things like bundles, right? Bundle tennis balls, things like federal care program, which is a membership program that gets discounts across our portfolio. People can save $300 with that program. Mega packs. So you change your offering or you adjust your offering for the consumer mindset as they navigate through a recession. Well, I share a condo building with Harry, who is a pit bull with a very bad attitude and the anger management problems that he used to work on. But in any case, he gets his Chewy delivery every week or two. Talk to us about your digital business, how you deal with some of those online competitors and kind of how your business is faring. Well, first of all, we can help Harry with our
Bloomberg Radio New York
"ron coughlin" Discussed on Bloomberg Radio New York
"Quick takes Tim stenotic from Bloomberg radio. Shares of petco sold off following earnings this week after the company cut its adjusted earnings per share and net revenue guidance for the full year. An analyst of Baird called the pet health and wellness giants forecast reset quote much needed. So to find out more about the company's miss and where it goes from here amid persistent inflation and a tight labor market, Bloomberg surveillance co host Paul Sweeney and I spoke with petco chairman and CEO, Ron Coughlin. Great companies bro, even in tough economies. So we had a 4% comp, which is a good number. We did not have the inventory issues that other companies are talking about most retailers are talking about inventory, excess inventory and having to discount. We didn't have that situation. We continue to see a positive mix shift towards premium and super premium brands. So a lot of good news, but at the same time, there is some pressure from the inflation on discretionary items like toys, tennis balls, leashes. And that pressure is our highest profit area, so that puts some pressure on the P and L. So in your P and L on your P and L, talk to us about inflation in terms of your cost of goods sold. Where do you guys see it in your P and L? Yeah, so freight would be a big one. Labor would be another one labor. We pretty much have in our model, but I don't think anybody had the freight freight inflation that we saw in their model because the gas really popped in March April type time period. Coming down is it helping you? It's starting to come down, but the freight gets tied to the inventory, so it doesn't show up in the P and L till later in Q three and into Q four. I actually have been in a store on second avenue bought a bunch of toys. I want to do shout out to Cheddar Lee, who was really lovely because I have a dog, a puppy that shoes through things in 30 seconds. So I came up with an armful of toys, and I said, help me help me, what's gonna, you know, last, and she was really wonderful. I have to say though, I noticed a lot of empty shelves. And I was curious in the dog toy area. Is it supply chain problems? What was it, or is it just people, I don't know, it looked like you were sold out. You know, there's not a single vendor that said, I think there's gonna be a million new pets in 2020 and other million new pets in 21 and elevated pets this year. So all of the vendors have been scaling their manufacturing. The bad news is that the supply lag, the demand, the good news is that supply and capacity is coming up now. I was in a brand new plant in Dallas for honest kitchen. Hills just announced major investments in their manufacturing. So that capacity really takes about two years to get new capacity up and that capacity is coming up now. We're seeing improving supply week after week. Talk to us about the demand side of this business, the pet business. It seemed like during the pandemic, a lot of folks went out and got themselves a pet a cat, a dog, something like that. I'm not sure where those owners are today where those pets are today, but how did that impact your business and how you're dealing with it today? Well, if you look at our business, we're up 34% on a three year basis. Our E comm business is up a 140%. Services business up 60%. So we have scaled tremendously on the back of that. But make no mistake about it. Today, 2022, the predictions are for it to still be elevated in terms of petted options versus 2019 pre-pandemic. And those stories about there being more relinquishments are really just stories. Relinquishments are below pre-pandemic. So the supply of pet and the pet universe is only growing. And we tend to do better in terms of capturing more than our fair share of new pets. So why don't you guys pull in your guidance? It's really that pressure on disposable income. That's it. And supplies. If you look at our food, our food's up double digits. Yeah. You look at our growth or sales. You look at our services, up double digits. It's really that segment of supplies, toys, balls, leashes, collars, that kind of thing. The rest of the business is highly, highly recession resistant. And as I said, we continue to trade up whether that's in food, to premium kibble or fresh frozen, or even our ready fashion brand. That was up double digit, which is kind of a higher end supplies brand. Do you talk recession at all? Of course we do. We have to plan for every eventuality. Do you expect it? A story the other day, 70% prediction of recessions. We need to be planned for that. So we're doing two things. One is making sure that our cost structure is prepared to navigate through that. And the second thing is what does that mean? There's hiring components. There's location components. There's travel components. You cut back and all the areas that aren't revenue generating, direct revenue generating, to make sure that if your revenue is impacted, your cost structure is not in line with not out of line with your revenue profile. The second piece, though, is making sure you're more attractive to customers who are going through a recession, right? So things like bundles, right? Bundle tennis balls, things like federal care program, which is a membership program that gets discounts across our portfolio. People can save $300 with that program. Mega packs. So you change your offering or you adjust your offering for the consumer mindset as they navigate through a recession. Well, I share a condo building with Harry, who is a pit bull with a very bad attitude. Anger management problems that he used to work on. But in any case, he gets his Chewy delivery. Every week or two, talk to us about your digital business, how you deal with some of those online competitors and kind of how your business is faring. Well, first of all, we can help Harry with our trainers. And get his attitude
Bloomberg Radio New York
"ron coughlin" Discussed on Bloomberg Radio New York
"Have some of the highest satisfaction is our vet employees. So it's been very, very strong for us. I'm just looking at the HDS function, the holder's function, and you're right. There are private equity owners for your company. So if I was a KKR and he'd drop a deal I have to do a pet deal, I mean, what's the story behind your company and your private equity relationships? How did that come about and kind of what's the plan from here? Yeah, they bought it multiple years ago. CBC and CPP as I said, they've been phenomenal. They've supported us really investing in the business, investing in things like that, investing in things like remodel, fresh frozen, and that's really enabled our growth. I talked about 34% three year growth. They've enabled it. And there was a moment of truth about four years ago when I said I wanted to invest in compensation and benefits. The reputation is that's not where they where they tend to support. And not our pee, in general, PE. And the answer was absolutely. We need to do that. We need to make sure we're treating the team properly. And they've supported all the investments we've made, actually, our average wage is now over $17 an hour. And today, we announced that we're over $15 as a base wage rate. We've absorbed every benefits hike at the company level, not pass it off. And that's what the full support of CBC and CPP. So they've been phenomenal partners and turning around the business. Yeah, it does seem like it's played out really well for you. And I just like my experience. Is that it became a very different experience, you know, taking my pups to the vet. One thing I want to ask you, where's growth going forward? Because you do have some international exposure on. So where do you continue to grow? Yeah. We have $40 billion addressable market that we're just leaning into. So if you look at the vet markets, a $30 billion market. We only have 200 stores so far. We have, we said we're going to get up to 708 hundred vets. So that's one area. The second thing is small town rural. I talk about an $8 billion market. That is exploding from a population standpoint, our first store is doing very, very well. You'll see us lean into that. Third is Rx. Rx is a scale addressable market. Again, and it's a mess in general. I think there's ways to make it easier, right? Exactly right. And provide a holistic solution there. And then the last thing I would say is insurance. Insurance, if you go to Europe, insurance is about 10% penetrated for pet parent. Here it's two to 3% penetrated. So we have an offer. It's growing double digit, but we can go even faster and we'll have some news shortly on that front. Is growth via acquisition in Europe, perhaps? Is that an option? Is that something that's on the table where you guys feel like enough opportunity here in the U.S., North America? Yeah, I like Mexico and maybe extending off of that. But we have no, we don't really comment on acquisitions, but that's a pretty well served market, right? Hey, just have a few minutes left here. And I think it's an interesting week where we are talking big macro things. And I know we've touched on some of them with you in the past. When you look at what seems to be conflicting signals around within our economy, whether it's labor data or labor data seems to be very strong, but you see continued weakness within the housing market and other areas. How do you see it or how does it how does it kind of factor what you do in terms of your longer term strategy at the company? Do you guys stay at home? Are you back at your office is talking Jackson hole? And Jay Powell? No seriously. I'll break it into two. Yeah. In terms of the here and now navigating through choppy waters. Our plan is to navigate through what we assume are going to be similar economic environment to today. We're not economists who say, okay. Let's assume we're going to this is going to be steady state for 6, 12 months. How would we navigate through that? And that's part of the revised conservative guide that we put out today was let's make sure that in this environment, we can deliver or over deliver. From a long-term strategy standpoint, our long-term strategy is a winner. The category is going to grow 7%. We continue to gain share in areas like super premium, gain share and vet gain share in digital. Basically, where all the profit pools are. So it's all about executing against our strategy. So in the short term, navigate through the choppy waters, assume they're not going to change in the short term in the long term continue executing on our strategy. And that's the other thing in the financials is we have such amazing growth opportunities that we want to continue to invest in those graphs growth opportunities so that we can take advantage of them coming out of this economic situation. What's the concern that your private equity shareholders have, do you think, what's the big thing that keeps them awake and how's your balance sheet is competition? What do you think? What do you hear from them when they, when you go make your presentation to them? Yeah, balance, balance sheet is strong and getting better every single day. We've had a significant reduction in our debt levels and that's healthy. They've been supporters all along. They've been, they've been along for the ride since minute one, both strategically as well as what we've done for our people. Like I said. So I think they'd say, hey, just keep executing on the strategy. It's going to work. We have a phenomenal category. We're very well positioned in that category. So it's all a matter of making it through this current economic environment. And then executing on a strategy to win. Do you feel like you have great visibility or decent visibility you did talk about why you reined in some of your estimates, the visibility for next year? Is it a tough call at this point? Well, you know, the nice thing is one of the factors should be gone. We're overlapping unprecedented stimulus. And that factor will not be there, right? When we head into Q one of next year. So that is very good. Where inflation goes, I think everyone has different theories on that. So as I said, we're assuming steady state on that. And if it's better, awesome. That's going to show up in our supplies business. But it'll be really good not to have the noise of the stimulus in the year ago. Yeah, it would be nice for the conversation to move along. We don't often get to do such deep dives. You have been a gem. And I feel like we covered some really smart ground. Thank you so much. Thank you. As a pleasure. Always a pleasure. Ron Coughlin, he is chief executive officer at petco, of course joining us here in our Bloomberg interactive broker studio. All right, off for a check on the markets and your top business stories off to Doug prisoner with a Bloomberg business news flash hey Doug. Hey Carol, I want to begin with the crude oil market in the electronic session WTI trading above $95 a barrel now the U.S. we are told has sent its response to the European Union regarding the latest proposal to revive the multinational accord that will limit Iran's nuclear program in exchange for lifting certain sanctions. WTI 95 O 5 and the Brent contract right
Bloomberg Radio New York
"ron coughlin" Discussed on Bloomberg Radio New York
"Thank you so much. Having a nice warmup conversation with our next guest. We're going to talk about petco because petco health and wellness. We did see the stock under some pressure in today's session this after the company cut its adjusted earnings per share in net revenue guidance for the full year bared coming out and saying this forecast reset was much needed. Quotation marks there. Let's see what the head of the company has to say. He is back with us. He's the chairman and CEO of petco, Ron Coughlin, back here in our Bloomberg interactive broker studio. Nice to have you here. How are you? Great to be here. Thanks for having me. You're tired, you sound like. A long day? Yeah, I'm good. I'm good. Talk to us about the quarter in the business. Yeah, you know, great companies grow, even in tough economies. So we had a 4% comp, which is a good number. You know, we did not have the inventory issues that other companies are talking about most retailers are talking about inventory, excess inventory, having to discount. We didn't have that situation. We continue to see a positive mix shift towards premium and super premium brands. So a lot of good news, but at the same time, there is some pressure from the inflation on discretionary items like toys, tennis balls, leashes. And that pressure is our highest profit area, so that puts some pressure on the P and L. So in your P and L on your P and L, talk to us about, I guess, inflation in terms of your cost of goods sold. Where do you guys see it in your P and L? Yeah, so freight would be a big one. Labor would be another one labor we pretty much have in our model, but I don't think anybody had the freight freight inflation that we saw in their model because the gas really popped in March April type time. Coming down is it helping you? It's starting to come down, but the freight gets tied to the inventory. So it doesn't show up in the P and L till later in Q three and into Q four. I have to say, when you talk about toys, I actually have been in a store on second avenue, bought a bunch of toys. I want to do a shout out to generally, who was really lovely because I have a dog, a puppy that shoes through things in 30 seconds. So I came up with an armful of toys, and I said, help me help me, what's gonna, you know, last, and she was really wonderful. I have to say, though, I noticed a lot of empty shelves. And I was curious in the dog toy area. Is it supply chain problems? What was it, or is it just people, I don't know, it looked like you were sold out. Yeah, well, sometimes that's a good thing, good profit. Well, that's why I'm curious I'm trying to understand. So there's not a single vendor that said, I think there's gonna be a million new pets in 2020 and other million new pets in 21 and elevated pets this year. So all of the vendors have been scaling their manufacturing. The bad news is that the supply lag, the demand. The good news is that supply and capacity is coming up now. I was in a brand new plant in Dallas for Anna's kitchen. Hills just announced major investments in their manufacturing. So that capacity really takes about two years to get new capacity up and that capacity is coming up now. We're seeing improving supply week after week. Talk to us about the demand side of this business, the pet business. It seemed like during the pandemic, a lot of folks went out and got themselves a pet a cat, a dog, something like that. I'm not sure where those owners are today where those pets are today, but how did that impact your business and how you're dealing with it today? Well, if you look at our business, we're up 34% on a three year basis. Our econ business is up a 140%. Our digital business up our services business up 60%. So we have scaled tremendously on the back of that. But make no mistake about it. Today, 2022, the predictions are for it to still be elevated in terms of pet adoptions versus 2019 pre-pandemic. And those stories about there being more relinquishments are really just stories. Relinquishments are below pre-pandemic. So the supply of pet and the pet universe is only growing. And we tend to do better in terms of capturing more than our fair share of new pets. So why don't you guys pull in your guidance? It's really that pressure on disposable income. That's it. And supplies. If you look at our food, our food's up double digits. Yeah. You look at our growth or sales. You look at our services, up double digits. It's really that segment of supplies, toys, balls, leashes, collars, that kind of thing. The rest of the business is highly, highly recession resistant. And as I said, we continue to trade up whether that's in food, to premium kibble, or fresh frozen, or even our ready fashion brand. That was up double digit, which is kind of a higher end supplies brand. Do you talk recession at all? Of course we do. We have to plan for every eventuality. Do you expect it? You know, most people's right now. I saw a story the other day, 70% prediction of recession. So we need to be planned for that. So we're doing two things. One is making sure that our cost structure is prepared to navigate through that. And the second thing is what does that mean? What does that mean? I always wonder what, does it mean not hiring? There's hiring components. There's location components, there's travel components. You cut back and all the areas that aren't revenue generating, direct revenue generating, to make sure that if your revenue is impacted, your cost structure is not in line with not out of line with your revenue profile. The second piece, though, is making sure you're more attractive to customers who are going through a recession, right? So things like bundles, right? Bundled tennis balls, things like federal care program, which is a membership program that gets discounts across our portfolio. People can save $300 with that program. Mega packs. So you change your offering or you adjust your offering for the consumer mindset as they navigate through a recession. Well, I share a condo building with Harry
Bloomberg Radio New York
"ron coughlin" Discussed on Bloomberg Radio New York
"Bloomberg quick takes Tim Steven from Bloomberg radio Shares a petco rallying this past week after the company revealed earnings beats on both the top and bottom line for the fourth quarter and it upped its full year outlook for adjusted earnings and revenues Okay we all know this Pets all the rage during the pandemic I know somebody sitting close to me right now who got a new doggie Got a new puppy You did how's your puppy done Really good Okay good Well it seems very well Really well yeah Well probably good and well If it's being trained well right Yes Well it does seem that the trend is continuing even as the threat of COVID wanes With more on how the business achieved a 7th consecutive quarter of double digit comp store sales growth We spoke with petco chairman and CEO of petco Ron Coughlin We made a big bet that we were going to develop an ecosystem of the full offering that pet parents want So we have our own vets We have grooming We have training We have supplies We have food and we do it in stores We also do it digitally And that was a big bet versus trying to be expert at one part of the thing which is what basically everyone else does And 54% of pet parents say that's what they want They want to partner to manage their pet lives I'm sure it's not easy for you I used to go to one place for a bet one place for a grooming One place where food my hunches you probably do that right now Kind of still do Yeah But I do a lot online in terms of products And that simplifies my world Yeah but if you could do it all in one place and then that company knows you and knows your data and the groomer knows the same thing that the vet knows we take better care of you And so that strategy is working The second thing that's working is our omnichannel strategy 80% of our online orders get fulfilled through our pet care centers We call the micro distribution centers That means there's faster to the customer and lower cost Does that mean they walk into or no It's separate distribution centers So there's three Your local petco right It had three different versions One we might ship from that store to you if you order it online Two you could same data delivery which you can't do online or three you might go in and pick it up if you're short on order Oh I need to get food I'm a way home and bopa is just like you order ahead on your Starbucks as an example So that's really working for us And then our vet business is working And we had a big announcement last week We had a joint venture with a vet partner and we bought them out last week We announced it And so we're bringing 800 veterinary professionals into our system And one of the biggest questions I get from investors is can you hire enough vets and you might have hired my vet who we loved and adored and who became part of a bigger practice and then is gone Our investors seeing the story though are the hearing this story because the stock is doing well today but it did hit a record low in late February It's down 30% from its highs of last year What are investors missing here Yeah I mean we got caught in some of the market downturn that happened And we just need to prove it over time And that's why I'm so proud of the 7 quarters of double digit growth with the margin expansion And also our bullishness was evidenced by our guide which was above consensus There were people who questioned whether we could grow in the second half of the year We did so at double digit rate there were people who questioned whether we can lap next year and we showed a big you know a nice guide going forward that people appreciate And I think that's why the stock is responding In addition to the fact that I think that there is a premium for companies that can execute in these times Whether it's the labor issues whether it's the different economic issues people who can execute it or getting a premium right now What segment of your business sees the biggest growth Because she talked about a couple of different things And there's omnichannel There's digital There's in the store There's the vet services They're selling pets What is it What is it that really juices the top and bottom line And profitability I love all my kids And that's some I love a little bit more The truth is they're all growing But if you look at our digital business we grew a 143% on a two year basis We more than doubled our digital business in the last two years I mean that's astounding How often do you more than double a business that already had scale in two years We did a 25 last quarter So how much of revenues is digital Purely digital Yeah digital is between 15 and 20% And how much of somebody who is digital then walks in the store What are you looking for When you're omnichannel I was just talking to chipotle They're omnichannel right They have chipotle and your digital only You can go to the store You can use the app There's all these different things How many how many people are going to the stores buying online You want somebody who's all in That's the way the world is going So if I go through the recent sequence 2000 happened and everyone went online right Even my father who loves going to source all of a sudden became an online customer for the first time Then in 21 people thought maybe they won't come back They came back to our stores in droves And more and more it is this omnichannel customer We call it retail three where you really bring this promise around your channel that we've all been talking about for years Together not only for that experience but also as fulfillment centers You hear target talking about using their targets as fulfillment centers It's killer the strategy got me to go to a Target Store in a long time And we truly believe we're one of the retail three leaders in defining.
Bloomberg Radio New York
"ron coughlin" Discussed on Bloomberg Radio New York
"From Bloomberg radio Shares a petco Rowling this past week after the company revealed earnings beats on both the top and bottom line for the fourth quarter and it upped its full year outlook for adjusted earnings and revenues Okay we all know this Pets all the rage during the pandemic I know somebody sitting close to me right now who got a new doggie Got a new puppy You did How was your puppy done Really good Okay good Well it seems very well Really well yeah Well probably good and well If it's being trained well right Yes Well it does seem that the trend is continuing even as the threat of COVID wanes With more on how the business achieved a 7th consecutive quarter of double digit comp store sales growth We spoke with petco chairman and CEO of petco Ron Coughlin We made a big bet that we were going to develop an ecosystem of the full offering that pet parents won So we have our own vets We have grooming We have training We have supplies We have food and we do it in stores We also do it digitally And that was a big bet versus trying to be expert at one part of the thing which is what basically everyone else does In 54% of pet parents say that's what they want They want to partner to manage their pet lives I'm sure it's not easy for you I used to go to one place for a bit One place for a grooming one place for food My hunch is you probably do that right now Kind of still do Yeah But I do a lot online in terms of products And that simplifies my world Yeah but if you could do it all in one place and then that company knows you and knows your data and the groomer knows the same thing that the vet knows we take better care of you And so that strategy is working The second thing that's working is our omnichannel strategy 80% of our online orders get fulfilled through our pet care centers We call them micro distribution centers That means there's faster to the customer and lower cost Does that mean they walk into or no It's separate distribution centers So there's three Your local petco right It had three different versions One we might ship from that store to you if you ordered online Two you could same day delivery which you can't do online or three you might go in and pick it up if you're short on order Oh I need to get food on my way home and bopa is just like you order a head on your Starbucks as an example So that's really working for us And then our vet business is working And we had a big announcement last week We had a joint venture with a vet partner and we bought them out last week We announced it And so we're bringing 800 veterinary professionals into our system And one of the biggest questions I get from investors is can you hire enough vets You might have hired my vet who we loved and adored and who became part of a bigger practice and then is gone Our investors seeing the story though are the hearing this story because the stock is doing well today but it did hit a record low in late February It's down 30% from its highs of last year What are investors missing here Yeah I mean we got caught in some of the market downturn that happened And we just need to prove it over time And that's why I'm so proud of the 7 quarters of double digit growth with the margin expansion And also our bullishness was evidenced by our guide which was above consensus There were people who questioned whether we could grow in the second half of the year We did so at double digit rate there were people who questioned whether we can lap next year And we showed a big a nice guide going forward that people appreciate And I think that's why the stock is responding In addition to the fact that I think that there is a premium for companies that can execute in these times Whether it's the labor issues whether it's the different economic issues people who can execute or getting a premium right now What segment of your business sees the biggest growth Because she talked about a couple of different things And there's omnichannel There's digital There's in the store There's the vet services They're selling pets What is it What is it that really juices the top and bottom line and profitability I love all my kids But some I love a little bit more The truth is they're all growing But if you look at our digital business we grew a 143% on a two year basis We more than doubled our digital business in the last two years I mean that's astounding How often do you more than double a business that already had scale in two years We did a 25 last quarter So how much of revenues is digital Purely digital Yeah digital is between 15 and 20% And how much of somebody who is digital then walks in the store What are you looking for when you're omnichannel I was just talking to chipotle They're omnichannel right They have chipotle and your digital only and go to the store You can use the app There's all these different things How many how many people are going to the stores buying online You want somebody who's all in That's the way the world is going So if I go through the recent sequence 2000 happened and everyone went online right Even my father who loves going to stores all of a sudden became an online customer for the first time Then in 21 people thought maybe they won't come back They came back to our stores in droves And more and more it is this omnichannel customer We call it retail three where you really bring this promise on any channel that we've all been talking about for years together Not only for that experience but also as fulfillment centers You hear target talking about using their targets as fulfillment centers It's killer the strategy got me to go to a Target Store in a long time And we truly believe we're one of the retail three leaders in defining that.
Bloomberg Radio New York
"ron coughlin" Discussed on Bloomberg Radio New York
"This past week after the company revealed earnings beats on both the top and bottom line for the fourth quarter and it upped its full year outlook for adjusted earnings and revenues Okay we all know this Pets all the rage during the pandemic I know somebody sitting close to me right now who got a new doggie Got a new puppy You did how's your puppy done Really good Okay good Well it seems very well Really well yeah Well probably good and well If it's being trained well right Yes Well it does seem that the trend is continuing even as the threat of COVID waynes With more on how the business achieved a 7th consecutive quarter of double digit comp store sales growth We spoke with petco chairman and CEO of petco Ron Coughlin We made a big bet that we were going to develop an ecosystem of the full offering that pet parents want So we have our own vets We have grooming We have training We have supplies We have food and we do it in stores We also do it digitally And that was a big bet versus trying to be expert at one part of the thing which is what basically everyone else does In 54% of pet parents say that's what they want They want to partner to manage their pet lives I'm sure it's not easy for you I used to go to one place for a bet one place for a grooming One place for our food my hunch is you probably do that right now Kind of still do Yeah But I do a lot online in terms of products And that simplifies my world Yeah but if you could do it all in one place and then that company knows you and knows your data and the groomer knows the same thing that the vet knows we take better care of you And so that strategy is working The second thing that's working is our omnichannel strategy 80% of our online orders get fulfilled through our pet care centers We call them micro distribution centers That means there's faster the customer and lower cost Does that mean they walk into or no It's separate distribution centers So there's three Your local petco right It had three different versions One we might ship from that store to you if you order it online Two you could same data delivery which you can't do online or three you might go in and pick it up if you're short on order Oh I need to get food and I'm way home and boba is just like you order a head on your Starbucks as an example So that's really working for us And then our vet business is working And we had a big announcement last week We had a joint venture with a vet partner and we bought them out last week We announced it And so we're bringing 800 veterinary professionals into our system And one of the biggest questions I get from investors is can you hire enough vets and you might have hired my vet who we loved and adored and who became part of a bigger practice and then is gone Our investors seeing this story though are the hearing this story because the stock is doing well today but it did hit a record low in late February It's down 30% from its highs of last year What are investors missing here Yeah I mean we got caught in some of the market downturn that happened And we just need to prove it over time And that's why I'm so proud of the 7 quarters of double digit growth with the margin expansion And also our bullishness was evidenced by our guide which was above consensus There were people who questioned whether we could grow in the second half of the year We did so at double digit rate There were people who questioned whether we can lap next year And we showed a big a nice guide going forward that people appreciate And I think that's why the stock is responding In addition to the fact that I think that there is a premium for companies that can execute in these times Whether it's the labor issues whether it's the different economic issues people who can execute it or getting a premium right now What segment of your business sees the biggest growth Because you talked about a couple of different things And there's omnichannel There's digital There's in the store There's the vet services They're selling pets What is it What is it that really juices the top and bottom line And profitability I love all my kids But some I love a little bit more The truth is they're all growing But if you look at our digital business we grew a 143% on a two year basis We more than doubled our digital business in the last two years I mean that's astounding How often do you more than double a business that already had scale in two years We did a 25 last quarter So how much of revenues is digital Purely digital Yeah digital is between 15 and 20% And how much of somebody who is digital then walked in the store What are you looking for when your omnichannel is just talking to chipotle They're omnichannel right They have chipotle and your digital only and go to the store You can use the app There's all these different things How many how many people are going to the stores buying online You want somebody who's all in That's the way the world is going So if I go through the recent sequence 2000 happened and everyone went online right Even my father who loves going to stores all of a sudden became an online customer for the first time Then in 21 people thought maybe they won't come back They came back to our stores in droves And more and more it is this omnichannel customer We call it retail three where you really bring this promise around your channel that we've all been talking about for years together Not only for that experience but also as fulfillment centers You hear targets talking about using their targets as fulfillment centers It's killer the strategy got me to go to a Target Store in a long time And we truly believe we're one of the retail three leaders in defining.
Bloomberg Radio New York
"ron coughlin" Discussed on Bloomberg Radio New York
"This past week after the company revealed earnings beats on both the top and bottom line for the fourth quarter and it upped its full year outlook for adjusted earnings and revenues Okay we all know this Pets all the rage during the pandemic I know somebody sitting close to me right now who got a new doggie Got a new puppy You did how was your puppy done Really good Okay good Well it seems very well Really well yeah Well probably good and well If it's being trained well right Yes Well it does seem that the trend is continuing even as the threat of COVID waynes With more on how the business achieved a 7th consecutive quarter of double digit comp store sales growth We spoke with petco chairman and CEO of petco Ron Coughlin We made a big bet that we were going to develop an ecosystem of the full offering that pet parents want So we have our own bets We have grooming We have training We have supplies We have food and we do it in stores We also do it digitally And that was a big bet versus trying to be expert at one part of the thing which is what basically everyone else does In 54% of pet parents say that's what they want They want to partner to manage their pet lives I'm sure it's not easy for you I used to go to one place for a bit one place for a grooming One place where food my hunch is you probably do that right now Kind of still do Yeah But I do a lot online in terms of products And that simplifies my world Yeah but if you could do it all in one place and then that company knows you and knows your data and the groomer knows the same thing that the vet knows We take better care of you And so that strategy is working The second thing that's working is our omnichannel strategy 80% of our online orders get fulfilled through our pet care centers We call them micro distribution centers That means there's faster to the customer and lower cost Does that mean they walk into or no It's separate distribution centers So there's three Your local petco right It had three different versions One we might ship from that store to you if you order it online Two you could same data delivery but you can't do online or three you might go in and pick it up if you're short on order Oh I need to get food On the way home and boba is just like you order a head on your Starbucks as an example So that's really working for us And then our vet business is working And we had a big announcement last week We had a joint venture with a vet partner and we bought them out last week We announced it And so we're bringing 800 veterinary professionals into our system And one of the biggest questions I get from investors is can you hire enough vets and you might have hired my vet who we loved and adored and who became part of a bigger practice and then is gone Our investors seeing this story though are the hearing this story because the stock is doing well today but it did hit a record low in late February It's down 30% from its highs of last year What are investors missing here Yeah I mean we got caught in some of the market downturn that happened And we just need to prove it over time And that's why I'm so proud of the 7 quarters of double digit growth with the margin expansion And also our bullishness was evidenced by our guide which was above consensus There were people who questioned whether we could grow in the second half of the year We did so with double digit rate There were people who questioned whether we can lap next year and we showed a big a nice guide going forward that people appreciate And I think that's why the stock is responding In addition to the fact that I think that there is a premium for companies that can execute in these times Whether it's the labor issues whether it's the different economic issues people who can execute or getting a premium right now What segment of your business sees the biggest growth Because she talked about a couple of different things And there's omnichannel There's digital There's in the store there's the vet services They're selling pets What is it What is it that really juices the top and bottom line And profitability I love all my kids And that's some I love a little bit more The truth is they're all growing But if you look at our digital business we grew a 143% on a two year basis We more than doubled our digital business in the last two years I mean that's astounding How often do you more than double a business that already had scale in two years We did a 25 last quarter So how much of revenues is digital Purely digital Yeah digital is between 15 and 20% And how much of somebody who is digital then walks in the store What are you looking for When your omnichannel I was just talking to chipotle there are omnichannel right They have chipotle and your digital only you can go to the store you can use the app There's all these different things How many how many people are going to the stores buying online You want somebody who's all in That's the way the world is going So if I go through the recent sequence 2000 happened and everyone went online right Even my father who loves going to stores all of a sudden became an online customer for the first time Then in 21 people thought maybe they won't come back They came back to our stores in droves And more and more it is this omnichannel customer We call it retail three where you really bring this promise on any channel that we have all been talking about for years together Not only for that experience but also as fulfillment centers You hear targets talking about using their targets as fulfillment centers We're killer the strategy got me to go to a Target Store in a long time And we truly believe we're one of the retail three leaders in defining that.
Bloomberg Radio New York
"ron coughlin" Discussed on Bloomberg Radio New York
"That where are you seeing inflationary pressure beyond what every other business talks about transportation and wages I mean is it pet food gonna get so much more expensive because of the rise in commodity costs fertilizer getting more expensive getting more expensive grain being shut off from so much of the world with Russia's invasion of Ukraine Where are you concerned about inflationary pressure Yeah you never like to see inflationary pressure come at you as a retailer and you don't like to pass it through There's been quite a bit in 2021 We have the highest end customer in the category So we've been able to pass that on But at the same time we're making sure that we provide options for customers So whether that all the way from the top end of fresh frozen to high end kibble to medium price wholehearted own brand to our vital care program that we actually announced in enhancement to where for $19 a month you can get grooming veterinary discounts on products And you can save 203 $100 So yes we're having to pass it through but we're also coming up with options and ways for customers to save to offset some of that So you're able to maintain margins We're able to we actually we had sequential improvement in our margins this past quarter And that can continue with those inflationary pressures whether it's food whether it's labor it means we're talking about energy and that's a throughput for everything So the guide that we provided had EBITDA margin expansion EBITDA margin expansion pretty much every quarter How do you feel about the second half And I think about the conversation we have with Gina Martin Adams earlier who covers the markets And she said another month of maybe the war and things that I start to rethink how the second half looks in terms of the equity front We have yet to hear companies taking down their revenue numbers You raise them for the year You feel really confident or is there something out there that says this could change You know we haven't no excuse mentality in our company So we took labor hits We took supply chain hits and we still delivered 18% growth on the year in 14% growth on the quarter So yes we take those but at the same time we have massive addressable market opportunities That was petco chairman and CEO Ron Coughlin Still to come on Bloomberg businessweek a sports story that was destined for Hollywood In fact that's where it all.
Bloomberg Radio New York
"ron coughlin" Discussed on Bloomberg Radio New York
"Sullivan from Bloomberg radio Shares a petco Rowling this past week after the company revealed earnings beats on both the top and bottom line for the fourth quarter and it upped its full year outlook for adjusted earnings and revenues Okay we all know this Pets all the rage during the pandemic I know somebody sitting close to me right now who got a new doggie Got a new puppy You did How was your puppy done Really good Okay good Well it seems very well Really well yeah Well probably good and well If it's being trained well right Yes Well it does seem that the trend is continuing even as the threat of COVID waynes With more on how the business achieved a 7th consecutive quarter of double digit comp store sales growth We spoke with petco chairman and CEO of petco Ron Coughlin We made a big bet that we were going to develop an ecosystem of the full offering that pet parents won So we have our own bets We have grooming We have training We have supplies We have food and we do it in stores We also do it digitally And that was a big bet versus trying to be expert at one part of the thing which is what basically everyone else does And 54% of pet parents say that's what they want They want a partner to manage their pet lives I'm sure it's not easy for you I used to go to one place for a bit one place for a grooming One place where food my hunch is you probably do that right now Kind of still do Yeah But I do a lot online in terms of products And that simplifies my world Yeah but if you could do it all in one place and then that company knows you and knows your data and the groomer knows the same thing that the vet knows We take better care of you And so that strategy is working The second thing that's working is our omnichannel strategy 80% of our online orders get fulfilled through our pet care centers We call the micro distribution centers That means there's faster to the customer and lower cost Does that mean they walk into or no It's separate distribution centers So there's three Your local petco right It had three different versions One we might ship from that store to you if you order it online Two you could same data delivery which you can't do online or three you might go in and pick it up if you're short on order Oh I need to get food on the way home and boba is just like you order a head on your Starbucks as an example So that's really working for us And then our vet business is working And we had a big announcement last week We had a joint venture with a vet partner and we bought them out last week We announced it And so we're bringing 800 veterinary professionals into our system And one of the biggest questions I get from investors is can you hire enough vets and you might have hired my vet who we loved and adored and who became part of a bigger practice and then is gone Our investors seeing this story though are the hearing this story because the stock is doing well today but it did hit a record low in late February It's down 30% from its highs of last year What are investors missing here Yeah We got caught in some of the market downturn that happened And we just need to prove it over time And that's why I'm so proud of the 7 quarters of a double digit growth with the margin expansion And also our bullishness was evidenced by our guide which was above consensus There were people who questioned whether we could grow in the second half of the year We did so at double digit rate there were people who questioned whether we can lap next year And we showed a big a nice guide going forward that people appreciate And I think that's why the stock is responding In addition to the fact that I think that there is a premium for companies that can execute in these times Whether it's the labor issues whether it's a different economic issues people who can execute or getting a premium right now What segment of your business sees the biggest growth Because she talked about a couple of different things And there's omnichannel There's digital There's in the store The vet services They're selling pets What is it What is it that really juices the top and bottom line And profitability I love all my kids And that's my love a little bit more The truth is they're all growing But if you look at our digital business we grew a 143% on a two year basis We more than doubled our digital business in the last two years I mean that's astounding How often do you more than double a business that already had scale in two years We did a 25 last quarter So how much of revenues is digital Purely digital Yeah digital is between 15 and 20% And how much of somebody who is digital then walked in the store What are you looking for when you're omnichannel I was just talking to chipotle There are omnichannel right They have chipotle and your digital only and go to the store You can use the app There's all these different things How many how many people are going to the stores buying online You want somebody who's all in That's the way the world is going So if I go through the recent sequence 2000 happened and everyone went online right Even my father who loves going to stores all of a sudden became an online customer for the first time Then in 21 people thought maybe they won't come back They came back to our stores in droves And more and more it is this omnichannel customer We call it retail three where you really bring this promise around your channel that we've all been talking about for years together Not only for that experience but also as fulfillment centers You hear targets talking about using their targets as fulfillment centers It's killer the strategy got me to go to a Target Store in a long time And we truly believe we're one of the retail three leaders in defining.
Bloomberg Radio New York
"ron coughlin" Discussed on Bloomberg Radio New York
"Yeah I guess so All right well let's get you caught up here on the closing bells Dow Jones Industrial Average Trying to finish the day in the red down about two tenths of a percent or about 60 points here The S&P 500 going to close out the day right around 47 O 5 Let's call it that is a record high here on the day 66 all the year according to Carol's count there up about 15 16.3 tons of represent the NASDAQ composite also going to close at a record high of 15,993 and the Russell 2000 really just didn't get any traction today I'll finish the day down about 6 tenths of a percent here at 2003 63 and change All right I'm listening today so I'm not going to repeat what's going on with the small caps remain I'm just going to let you know that But what's interesting is the amount of records that we have seen this year And the momentum even though it was kind of a bouncing around trade here S&P 500 though as remain did mention at the top 168 higher at 336 lower So overall you're seeing a lot more of a risk off trade in today's session Taylor Yeah Carol you can really see that on a sector level as well When you take a look at the composition of the S&P 500 for our radio audiences we do on the charts It's green and it's red but there's some red even in the winners circle here And I have to say it's two themes It's chips and retail So basically you're Nvidia Macy's and Cole you're doing pretty well Those are the two sectors that are up about 3% on the day Really really strong earnings from those companies You take it down to the bottom and it's an unwind of the defensiveness right Utilities household products food and beverage and some telecoms off about 7 tenths of 1% All right let's get to some of the gainers I thought you were gonna say it was about chips and kale 'cause sweet green man off and running in today's session Doubling at one point by the end of the session in its first day as a publicly held company up about 76 77% here 49 in change here coming out upsizing its IPO sold above the IPO price but it's pretty amazing to see this IPO just strong out of the gate Mentioned retailers real quickly that was definitely on a radar today Macy's coles among them really rallying Macy's up about 21% here This is after the company in terms of the third quarter stronger than expected results raising its full year guidance and strong consumer demand going into the holidays And I do want to mention Nvidia that was really so much strength for the technology trade today up about 8 and a quarter percent here at the close The company reporting a strong third quarter boosting its sales outlook for the rest of the year And that stock hitting a record certainly in the trade to date him You got the gainers I got the decliners Let's start with a Cisco Leading the pack at the bottom when it comes to the S&P 500 both on a percentage basis in on a point basis down 5.5% on the day to today shares falling after the company gave a lackluster revenue forecast for the current period hurt by a shortage of components That makes it difficult the company says to keep up with demand Cisco's executives say they expect this part shortage to last until the second half of the company's fiscal year Cisco also dragging down the Dow today Shares of petco slumping the most since January IPO down more than 13% today It was really solid quarter for the company You guys spoke to Ron Coughlin we spoke to Ron Coughlin on Bloomberg radio as well They beat on the top line the bottom line they boosted their outlook Gross margin though was the issue that came in slightly blow consensus due to supply chain costs Collins told us that the company's getting creative when thinking about supply chain challenges especially when it comes to ports And actually Romain going to different parts of the country with their good so checking out ports in the northwest rather than in California and then also in Texas as well Rivian lower on the day We got a lot of earnings crossing the bar right now Just gonna get to Applied Materials real quick Those shares down 6% here in the post market They're fiscal fourth quarter numbers here Not looking great here They missed on adjusted EPS 1.94 versus 1.96 The street was looking for on revenue 6.35 billion amat gave them 6.12 billion So a miss on that Here's your forecast here One Q net sales fiscal one Q 6.16 billion plus or -250 million And as far as the EPS numbers go one 78 to one 92 the street was looking on average for one 97 guys All right so we're seeing shares of apply materials down about 6.2% in the after hours Let's go to the retail side of things because raw stores coming out We've seen some really strong performance from Macy's and Kohl's They really rallied in today's regular session raw stores though out with their third quarter EPS It's a big beat folks Dollar 9 a share one O 9 a share the estimate was for 78 cents a share talking about the outlook Fourth quarter EPS 83 to 93 cents though that is light one O one is the estimate fourth quarter comp sales they're looking for up 7 to 9% fiscal year comp sales of 12 to 13% There looks like a bumping up They had seen about ten to 12% higher So taking a look at that company Caroline in the after hours we're seeing that move up about 1.8% And it's just extraordinary how department stores Some of these key retailers just powered back the moves from Macy's the moves from And the fact that we'd sort of written them off thought that that type of buying was different but ecommerce now people want to get back into bricks and mortar They want to actually be able to touch and feel the things they're going to purchase if we're worried about supply chains to a certain extent And these companies have really managed their inventories ahead of the holiday Is that want or is that kind of necessity right now A lot of people have been spooked by the fact that you're just something online you have no idea whether it's going to show up or not When it shows up so maybe there's a sense of let me just go into the store and see what I can get and what's physically there Well Ross Stores is certainly highlighting all of those topics Is they're saying that it is significantly exceeded all of our expectations despite waning government stimulus Huge uncertainty relative to the spread of the variants even though they're operating margins are down just a little bit from 2019 That is offset despite some of the big headwinds that they're getting from wait for it higher freight wage and COVID related costs So managing all of those supply chain has been a theme to him that we've seen throughout all of these earnings Yeah I want to go back to something that Caroline said that was fascinating that we learned from Macy's earlier in the day today because even though consumers do you want to get back and be in stores Still there's a lot of pressure on Macy's coming from Jana partners to actually spin off its ecommerce business into a separate company similar to what Sachs did And we think about it in the context of direct to consumer companies actually going and adding stores at least before the pandemic So there is this sort of bifurcation happening when it comes to retailers that have been reporting of late What's your point out too I mean just on the same conversation before we move on far fetch is out with earnings And they're not necessarily good Obviously they're pretty much only an online sort of network rather than the omnichannel thing that we're talking about A loss per share that was not necessarily as bad as what the street was looking for but still a loss here And then you talk about some of the gros merchandise volume It's growing here but you're not really seeing the reaction and the shares And I'm wondering if this does become sort of this play for investors between some of the more brick and mortar and omnichannel names and some of the more pure play ecommerce standing Yeah sinking 10% post market as that revenue does indeed miss a far fetch It's interesting that we continue to see of course some pretty ugly numbers coming out of the Chinese ecommerce giants as well Alibaba was pretty underwhelming to say the least And we got Baidu coming out and saying that it still sees its fourth quarter revenue at 31 billion to 34 billion but they had a profit beat of raw but a.
Bloomberg Radio New York
"ron coughlin" Discussed on Bloomberg Radio New York
"All right so we love the ticker We love the company We're talking about petco health and wellness which reported earnings this morning I thought you were going to go No That's the ticker It was a third quarter beat for earnings revenues and comp sales Outlook from the CEO Ron coglin saying the third quarter comp sales growth to 15% giving them confidence to raise guidance for the full year of 2020 went even so investors not impressed the stock down hovering near lows down about 12 and a half percent So great to have back with us in our interactive brokers studio The chairman and CEO of petco Ron Coughlin joining us Good to have you here Great to be here Thanks for having me We'll talk to us about the quarter It seemed like a pretty good one Yeah I mean we had a great quarter If you look on the top line we were up 15% We passed it through on the bottom line up 17% If you look on a two year basis very strong if you look at our digital business up 30 plus 150% on a two year basis which is one of the strongest prints in terms of digital business of any retailer we're gaining share in a growing category And also we added $53 million of gross margin year over year Gross margin rate standpoint there was three dynamics One was we sold more consumables food and treats versus supplies and I can explain that more We had we'll go there right now Okay All right So basically let's talk about a pet's life sign You're one of a pet So first of all the question there's been a question to people spend more year one and then down in year two It's common all through the pet's life with the exception of end of life where you have more Rx and more veterinary bills But you're one you're two is the same but the mix is different Year one you get your crate You get your bed you get your leash your collar your too the bets put onto my guy's case about 30 40 pounds And guess what The bowls are bigger The fill is bigger Craves bigger So what happens is the food versus supplies mix is adjusted This is amplified because of the 2020 pandemic puppies and so we had a mix towards consumables The second thing that happened was we had basically two X the share gain we had a year ago because we're able to get our hands on supply and the other programs we're doing So do you think that that shift toward consumables indicates that the pandemic pet boom is over that we will not continue to see the growth in people actually buying new pets and as a result buying more from you First of all we prefer adopted versus buy I'm sorry Sadly no I should say We adopted our cap I wasn't picking on you It's just with our petco love we support all the rescues and we're trying to eliminate ethane Pipette euthanasia which unfortunately still exists But actually adoptions are still an elevated level They're just not the exact same level of 2020 which was the planets aligned in 2020 but still had an elevated level But the second thing that we now know is millennials and gen zers adopted a lot of those pets and guess what they do They spend more So spend per pet is going up So from an industry standpoint the industry went from a prediction of 6 to 7% from 21 to 25 to prediction of 7% for those years So the industry is going to be strong and we're gaining share So what would you say to investors like oh my God you've got it wrong Yeah I would say we have a great category We're gaining share and there were some unique dynamics between 20 and 21 that are playing out in the gross margin But in this market where you have consumers wanting to spend more the main thing is the gross margin dollars not the rate because we got 53 million more gross margin dollars and we flowed to the bottom line ahead of our top line So I think that we're executing very well in this market What's the outlook from here And we've got to ask you a little bit about supply chain I mean we ask everybody and I'm sure you've been asked a million times here in this latest quarter What's your supply chain like Yeah well first on the outlook we raised our guidance So it's our 32nd beaten raise An early Q four is strong And that's what we said today In terms of supply chain from our standpoint we only have about a third of our revenue 30% of our revenue that is exposed to international supply chains The remainder of it is domestically sourced or services We have less exposure to that issue But that said we're moving on to carriers that have new carriers that have capacity new ports that have capacity So our supply chain team is doing a great job being nimble Because it has to be nimble because it's strained Because it's you look at Long Beach right There's lots of conversations about Long Beach But at the same time we got enough supply to grow 15% And if you ask me archosaur strength we got more than our fair share of supply What's the point you're using that's not as crowded There's northwest ports There's Texas port So we're being creative as we wherever there is a capacity That's being nimble Yeah I just want to ask one more on margins because.
WTOP
"ron coughlin" Discussed on WTOP
"O P. News. This is a Bloomberg money minutes over the past year, the pandemic with its lockdowns and work from home orders made a lot of us lonelier. And that helped prompt a boom in demand for pets. Wow, we were a covid beneficiary where a bit of a unicorn because we also come out of Covid stronger. Ron Coughlin, CEO of Petco says Americans adopted or bought roughly three million new pets last year. Pet care Cos That's the gift that keeps on giving those pets. They're going to need to be fed. They're gonna need to be grown. They're going to be vaccinated, and that's going to lift the category for a decade or more. Pet care retailers see the same trend as other types of retailers. More money moving to online merchants. But conference says pet stores can remain relevant. 39% of customers are actually Omni Channel, which means yes. Sometimes they want to go to e commerce. But other times they want to go into one of our locations. It might be to get groomed it might be to see it. That the key conferences is to keep offering what the Internet can't from the Bloomberg newsroom I'm Andrew Rodeo on W T O P. It's 7 26 coming up. Six people shot in Northwest EC. Three of them died and police are looking for suspects business. It's never just another day. Every day is the day There's the day you open your 500 location or expand to a new city the day you deliver a make or break pitch from 1000 Miles. Miles away, or the day that you have to start at all all over.
Bloomberg Radio New York
"ron coughlin" Discussed on Bloomberg Radio New York
"Gonna go switch gears. We got to talk about some of the market activity that we're already seeing this new year, including once again, an active market to take companies public. Amazing. Just a couple weeks in right, Tim the 2021 I po market, often runny. We cut up With Bloomberg News deals. Reporter crystals see to hear about the activity. We we really are saying the yet with very, very sizable on high profile IPO's just this week, we have seen at least six companies when public in New York on that includes Petco, and that includes a firm posh Mar. A lot of them are consumer facing companies. We have seen a bunch of technology companies went public. Laid in the quarter. But let it be consumer attack. 2021 is going to be a year of another record year, potentially for IPO's. We already have seen, you know, certain companies come out and say that they have either confidentially found or engaging advisors on listings, so not only that we are potentially going to Seymour directly saying given there now. Able to raise cos I would raise a proceeds from from these transactions. So all in all, it's gonna be a big year for E. C. M. For capital markets on bit's The best is one of the best start in the year. That was seen s Oh, yeah. Petco and Theodore options really help them in terms of growth, And it's not just a short term, um, actual term boost in revenue or in business that they're gonna see. People who adopt during the pandemic are going to have the pet for the next decade or so, And that really helped him and it's the same train that they see in the suburbs and in cities. Um so in terms of extension, um millennials, getting pets and covert definitely have been a driver. Echo a name that's going public for a second time and with a great ticker. We're talking about Petco Health and Wellness, which follows the pop prints of chewy, which went public last year and bark expected This year via SPAC. Let's not forget that Julie was a cover story at Bloomberg Business Week. I mean, it's all about everybody's pets. I do want to say, though, that the owner of the animal supply chain store Petco Man, they raised 864 million in that I po. Yeah, a lot right, and it returned the retailer to the public market 15 years after it was taken private. The company, which is changing its name to Petco Health and wellness Company, in conjunction with the listing sold 48 million shares for $18 each No. After the I P. A Petco will continue to be controlled by its current owners that includes CVC Capital Partners and Canada Pension Plan Investment board. They acquired Petco for 4.6 billion from TPG and Letter Green and 2016. A decade after those two firms took Peco private. It's one of those Harvard Business School's case, but it is I got to say yes, absolutely is. It also speaks to the cycle of this stuff, right public private, private public right, which we see a lot and in the process. Everybody's making a lot of money along the way we could. Up with Petco CEO Ron Coughlin and of that ticker, by the way, Let's get back to that. It's w 00 F wolf. Let me start with what hasn't changed. That hasn't changed is the mission of the company to really improve the lives of pets? Pet parent has always been in the hearts. Of the folks who work at Petco. But what's changed is we really retooled the business. Instead of being a big bag of dog food in a cart type company. We really become a complete partner for the health and wellness of a pet parrot, and we're really the only ones that can do that. Because we're the only ones who have a veterinary hospitals. Training, grooming that they online and the mass players don't have we have the highest and food with on Lee, retailers said. We're getting rid of artificial ingredients getting rid of shock collars. And then we have strong e commerce and our stores, which are now called pet care centers that Maura um or are working together. So here's an amazing fact for you 80% or e commerce orders are getting fulfilled. Who are pet care centers, which just gives us faster to the customer and lower costs versus competition, Right? You don't have to have these huge what massive distribution centers. We call that right? We call these micro distribution centers. Yes, and it really gives us a competitive edge. We talked about it as forward deployed inventory. Ron, I gotta say, I love dogs got my dog scout. She's quite the spoiled little critter. But what's interesting is that I've talked with the CEO of two. We follow this sector because it has really exploded. We have definitely seen it take off. Where's the most growth? Is it the healthcare side of it and the pet care centers? Is that it? Is it merchandise? What is it? So you're seeing explosive growth and services. So that's where we're putting a lot of effort. We're building out the fastest. That network build out in history really focused on The affordable vet care. 70% of pests don't get the care they need because of affordability. So we're rolling out 70 that hospitals a year, so that's a big growth area. And the other growth area is around digital. And that's where you know we were growing 20 to 30% before Cove it and we're growing 90% last quarter in our digital offering, So you're seeing that competitive it Competitive advantage Come through. Listen, we know the pandemic. I'm sure you've asked been asked this question A million times have forgive me. The pandemic led to people Adopting a lot of pets I know is I walked my dog over the last year. The streets were kind of littered with you could see the various, you know, pet retailer's e tailers boxes. Everybody was buying things for their pets argue at all concerned that as we all eventually get back to work that maybe that focus on our pets changes. Yeah, So, So first we have 3.3 million new pets in America today. Based upon what happened in covert and people needing a little more joy in their lives and those adoptions, and those need to be said they need to be groomed. They need to be trained and they're going to be vaccinated so that provide the lift the entire category in terms of change of behavior. The good news is more and more companies and plays or talking about working from home, so that should be good and more more employers are becoming dog friendly, so we don't anticipate and his history says There's not a lot of, you know returns if you will with live pets, so and if if you know where we actively try Tol, make sure that pets are put in homes. Peco Foundation Save 401,000 lives a year from euthanasia, and we're dedicated, trying eliminate euthanasia, so We're gonna be a catalyst for making sure that nothing bad happens. Excited, responsible pet ownership. That's the thing that I think you know, everybody needs to know about because that is going to help you in your cause there. Hey, brick and mortar. How important is that? Like I do you guys think about That you need to have to some extent, some saturation almost like a Starbucks where people if they're moving around, they need something for the pets that they see Pepco's everywhere. How important is that to the business story for you guys? You know, we're comfortable with our footprint will. What I will tell you is our brick and mortar pet care centers are absolutely sources of competitive vantage. You think about it right? They are the salons for pets. They're the hospital for pets and even the schools for peds s O R services make you know we get much more utilization than your traditional retailer..
Bloomberg Radio New York
"ron coughlin" Discussed on Bloomberg Radio New York
"We got to talk about some of the market activity that we're already seeing this new year, including once again an active market to take companies public. Amazing. Just a couple weeks in right, Tim the 2021 I po market, often runny. We cut up The Bloomberg News deals reporter Crystal Sea to hear about the activity. We we really are saying the year with very, very sizable on high profile IPO's just this week, we have seen at least six companies when public in New York on that includes Petco, and that includes a fair impartial are a lot of them are consumer facing companies. We have seen a bunch of technology companies went public. Laid in the quarter. But let it be consumer attack. 2021 is going to be a year of another record year, potentially for IPO's We already have seen, you know, certain companies come out and say that they have either confidentially found or engaging advisors on listings, so not only that we're all potentially gonna Seymour directly saying given there now. Able to raise cos I would raise a proceeds from from these transactions. So all in all, it's going to be a big year for E. C. M for capital markets on but it's the best it's one of the best start in the year. That was seen s Oh, yeah. Petco and Theodore options really help them in terms of growth. And it's not just a short term ex, actual term boost in revenue or in business that they're going to see people who adopt during the pandemic are going to have a pet for the next decade or so, And that really helped him and it's the same train that they see in the suburbs and in cities, um, so in terms of extension And Millenials getting peds and covert definitely have been a driver, Peco, a name that's going public for a second time, and with a great ticker. We're talking about Petco Health and Wellness, which follows the palm prints of chewy, which went public last year and bark expected This year via a speck. Let's not forget that, too. He was a cover story at Bloomberg Business Week. I mean, it's all about everybody's pets. I do want to say, though, that the owner of the animal supply chain store Petco Man, they raised 864 million in that I po. Yeah, a lot right, and it returned the retailer to the public market 15 years after it was taken private. The company, which is changing its name to Petco Health and wellness Company, in conjunction with the listing sold 48 million shares for $18 each Now, after the I P. A. Petco will continue to be controlled by its current owners that included CVC Capital Partners and Canada Pension Plan Investment board. They acquired Petco for 4.6 billion from TPG and Letter Green and 2016. A decade after those two firms took Peco private. It's one of those Harvard Business School's case, but it is I got to say yes, absolutely is. It also speaks to the cycle of this stuff, right public private, private public right, which we see a lot and in the process. Everybody's making a lot of money along the way we could. Up with Petco CEO Ron Coughlin and of that ticker, by the way, Let's get back to that. It's w 00 F wolf. Let me start with what hasn't changed. That hasn't changed is the mission of the company to really improve the lives of pet pet parent has always been in the heart. Of the folks who work at Petco. But what's changed is we really retooled the business. Instead of being a big bag of dog food in a cart type company, we really become a complete partner for the health and wellness. The pet parrot, and we're really the only ones that can do that because we're the only ones who have a veterinary hospitals. Training, grooming that they online and the mass players don't have we have the highest and food with on Lee, retailers said. We're getting rid of artificial ingredients, getting rid of shock collars. And then we have strong e commerce and our stories, which are now called pet care centers that Maura um or are working together. So here's an amazing fact for you. 80% of re commerce orders are getting fulfilled through our pet care centers,.
Bloomberg Radio New York
"ron coughlin" Discussed on Bloomberg Radio New York
"About some of the market activity that we're already seeing this new year, including once again, an active market to take companies public. Amazing. Just a couple weeks in right, Tim the 2021 I Po market often running, we cut up The Bloomberg News deals reporter Crystal Sea to hear about the activity. We we really are saying the year with very, very sizable on high profile IPO's Just this week, we have seen at least six companies when public in New York on that includes Petco, and that includes a firm posh bar. A lot of them are consumer facing companies. We have seen a bunch of technology companies went public. Laid in the quarter. But let it be consumer attack. 2021 is going to be a year of another record year, potentially for IPO's We already have seen, you know, certain companies come out and say that they have either confidentially found or engaging, advises on listings, so not only that we are potentially gonna Seymour directly saying given there now. Able to raise cos I would raise a proceeds from from these transactions. So all in all, it's going to be a big year for E. C. M. For capital markets on it's the best. It's one of the best start in a year. That was seen s Oh, yeah, Pickle in the adoptions, really help them in terms of growth, And it's not just a short term, um, actual term boost in revenue or in business that they're gonna see. People who adopt during the pandemic are going to have the pet for the next decade or so, And that really helped him and it's the same train that they see in some suburbs and in cities. Um so in terms of extension, um millennials, getting pets and covert definitely have been a driver. Echo a name that's going public for a second time and with a great ticker. We're talking about Petco Health and Wellness, which follows the palm prints of chewy, which went public last year and bark expected This year via a speck. Let's not forget that Julie was a cover story at Bloomberg Business Week. I mean, it's all about everybody's pets. I do want to say, though, that the owner of the animal supply chain store Petco Man they raised 864 million in that I po. Yeah, a lot right, and it returned the retailer to the public market 15 years after it was taken private. The company, which is changing its name to Petco Health and wellness Company, in conjunction with the listing sold 48 million shares for $18 each No. After the I P. A Petco will continue to be controlled by its current owners that includes CVC Capital Partners and Canada Pension Plan Investment board. They acquired Petco for 4.6 billion from TPG and Letter Green and 2016. A decade after those two firms took Peco private. It's one of those Harvard business School's case that it is I got to say yes, absolutely is. It also speaks to the cycle. Of this stuff, right public, private, private public right, which we see a lot and in the process, everybody's making a lot of money. Along the way. We caught up with Petco CEO Ron Coughlin and of that ticker, by the way, Let's get back to that. It's w 00 F wolf. Let me start with what hasn't changed. That hasn't changed is the mission of the company to really improve the lives of pets? Pet parent has always been in the heart. Of the folks who worked at Petco. But what's changed is we really retooled the business. Instead of being a big bag of dog food in a cart type company, we really become a complete partner for the health and wellness. The pet parrot, and we're really the only ones that can do that because we're the only ones who have a veterinary hospitals. Training, grooming that they online and the mass players don't have we have the highest and food with on Lee, retailers said. We're getting rid of artificial ingredients, getting rid of shock collars, and then we have strong e commerce. And our stores, which are now called pet care centers that Maura um or are working together. So here's an amazing fact for you. 80% of our e commerce orders are getting fulfilled. Who are pet care centers, which just gives us.