Q2 2024 Overview Net revenue of $1.52 billion decreased 0.5 percent year over year Comparable sales increased 0.3 percent year over year and increased 3.5 percent on a two-year basis GAAP net loss of $24.8 million , or $(0.09) per share, compared to GAAP net loss of $14.6 million , or $(0.05) per share in the prior year Adjusted EBITDA 1 of $83.5 million compared to $112.6 million in the prior year Operating Cash Flow of $69.4 million compared to $96.6 million in the prior year Free Cash Flow 1 of $42.0 million compared to $44.6 million in the prior year

SAN DIEGO, Sept. 10, 2024 /PRNewswire/ — Petco Health and Wellness Company, Inc. (Nasdaq: WOOF), a complete partner in pet health and wellness, today announced its second quarter 2024 financial results. In the second quarter of 2024, Petco delivered net revenue of $1.52 billion, down 0.5 percent versus prior year. On an as-reported basis, the company’s consumables business was up 1.5 percent versus prior year, and services and other business was up 3.1 percent versus prior year. Growth in the company’s consumables and services and other business was offset by the company’s supplies and companion animal business, down 4.7 percent versus prior year. GAAP net loss in the second quarter of 2024 was $24.8 million or $(0.09) per share, compared to GAAP net loss of $14.6 million or $(0.05) per share in the prior year. Adjusted Net Income1 was $(5.9) million or $(0.02) per share, compared to $16.3 million or $0.06 per share in the prior year. Adjusted EBITDA1 was $83.5 million compared to $112.6 million in the prior year.

“Our second quarter results demonstrate the ongoing work of our teams to strengthen our retail fundamentals and accelerate the path to improved profitability,” said Joel Anderson, Petco’s Chief Executive Officer. “I could not be more excited to lead Petco at this pivotal time. Looking ahead, I see tremendous opportunities for us to significantly improve our operating and financial performance and better leverage Petco’s strengths to capture greater share, deliver sustained profitability, and create value for shareholders.” (1) Adjusted EBITDA, Adjusted Net Income, Adjusted Earnings Per Share (“Adjusted EPS”), and Free Cash Flow are non-GAAP financial measures. See “Non-GAAP Financial Measures” for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP measures.

**Revenue:** The company expects to generate revenue of $1.5 billion in Q3 2024. This represents a 10% year-over-year growth, driven by strong demand for its products and services. **Adjusted EBITDA:** The company expects to generate $250 million in Adjusted EBITDA for Q3 2024.

Earnings Conference Call Webcast Information: Management will host an earnings conference call on September 10, 2024 at 5:00 PM Eastern Time to discuss the company’s financial results. The conference call will be accessible through a live webcast. Interested investors and other individuals can access the webcast, earnings release, and earnings presentation via the company’s investor relations page at ir.petco.com. A replay of the webcast will be archived on the company’s investor relations page through September 24, 2024 until approximately 5:00 PM Eastern Time. About Petco, The Health + Wellness Co.: Founded in 1965, Petco is a category-defining health and wellness company focused on improving the lives of pets, pet parents and our own Petco partners. We’ve consistently set new standards in pet care while delivering comprehensive pet wellness products, services and solutions, and creating communities that deepen the pet-pet parent bond. We operate more than 1,500 pet care centers across the U.S., Mexico and Puerto Rico, which offer merchandise, companion animals, grooming, training and a growing network of on-site veterinary hospitals and mobile veterinary clinics. Our complete pet health and wellness ecosystem is accessible through our pet care centers and digitally at petco.com and on the Petco app. In tandem with Petco Love, a life-changing independent nonprofit organization, we work with and support thousands of local animal welfare groups across the country and, through in-store adoption events, we’ve helped find homes for nearly 7 million animals.

Forward-Looking Statements: This earnings release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, concerning expectations, beliefs, plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements that are not statements of historical fact, including, but not limited to, statements regarding our Q3 and full year 2024 guidance, operational reset of our business, our competitive positioning, profitability, cost action plans and associated cost-savings. Such forward-looking statements can generally be identified by the use of forward-looking terms such as “believes,” “expects,” “may,” “intends,” “will,” “shall,” “should,” “anticipates,” “opportunity,” “illustrative,” or the negative thereof or other variations thereon or comparable terminology. Although Petco believes that the expectations and assumptions reflected in these statements are reasonable, there can be no assurance that these expectations will prove to be correct or that any forward-looking results will occur or be realized. Nothing contained in this earnings release is, or should be relied upon as, a promise or representation or warranty as to any future matter, including any matter in respect of the operations or business or financial condition of Petco. All forward-looking statements are based on current expectations and assumptions about future events that may or may not be correct or necessarily take place and that are by their nature subject to significant uncertainties and contingencies, many of which are outside the control of Petco. Forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results or events to differ materially from the potential results or events discussed in the forward-looking statements, including, without limitation, those identified in this earnings release as well as the following: (i) increased competition (including from multi-channel retailers, mass and grocery retailers, and e-Commerce providers); (ii) reduced consumer demand for our products and/or services; (iii) our reliance on key vendors; (iv) our ability to attract and retain qualified employees; (v) risks arising from statutory, regulatory and/or legal developments; (vi) macroeconomic pressures in the markets in which we operate, including inflation and prevailing interest rates; (vii) failure to effectively manage our costs; (viii) our reliance on our information technology systems; (ix) our ability to prevent or effectively respond to a data privacy or security breach; (x) our ability to effectively manage or integrate strategic ventures, alliances or acquisitions and realize the anticipated benefits of such transactions; (xi) economic or regulatory developments that might affect our ability to provide attractive promotional financing; (xii) business interruptions and other supply chain issues; (xiii) catastrophic events, political tensions, conflicts and wars (such as the ongoing conflicts in Ukraine and the Middle East), health crises, and pandemics; (xiv) our ability to maintain positive brand perception and recognition; (xv) product safety and quality concerns; (xvi) changes to labor or employment laws or regulations; (xvii) our ability to effectively manage our real estate portfolio; (xviii) constraints in the capital markets or our vendor credit terms; (xix) changes in our credit ratings; (xx) impairments of the carrying value of our goodwill and other intangible assets; (xxi) our ability to successfully implement our operational adjustments, achieve the expected benefits of our cost action plans and drive improved profitability; and (xxii) the other risks, uncertainties and other factors identified under “Risk Factors” and elsewhere in Petco’s Securities and Exchange Commission filings. The occurrence of any such factors could significantly alter the results set forth in these statements.

Petco Health and Wellness Company, Inc. (Petco) is a leading pet care company that provides a wide range of products and services for pets and their owners. The company operates in the United States and Mexico, with a strong focus on animal welfare and community engagement.

$ 1,278,598 (1 %) Services and other 260,006 252,136 3 % Total net sales 1,523,755 1,530,734 (0 %) Cost of sales: Products 787,103 789,091 (0 %) Services and other 155,927 148,639 5 % Total cost of sales 943,030 937,730 1 % Gross profit 580,725 593,004 (2 %) Selling, general and administrative expenses 578,257 568,967 2 % Operating income (loss) 2,468 24,037 (90 %) Interest income (672) (764) (12 %) Interest expense 36,805 37,493 (2 %) Loss on partial extinguishment of debt — 305 (100 %) Other non-operating (income) loss — (1,795) (100 %) Loss before income taxes and income from

equity method investees (33,665) (11,202) 201 % Income tax (benefit) expense (4,651) 6,732 N/M Income from equity method investees (4,191) (3,328) 26 % Net loss attributable to Class A and B-1 common stockholders $ (24,823) $ (14,606) 70 % Net loss per Class A and B-1 common share: Basic $ (0.09) $ (0.05) 66 % Diluted $ (0.09) $ (0.05) 66 % Weighted average shares used in computing net loss per Class A and B-1 common share: Basic 273,074 267,163 2 % Diluted 273,074 267,163 2 % PETCO HEALTH AND WELLNESS COMPANY, INC. CONSOLIDATED BALANCE SHEETS (In thousands, except per share amounts) (Unaudited and subject to reclassification)

August 3, 2024 February 3, 2024 ASSETS Current assets: Cash and cash equivalents $ 127,620 $ 125,428 Receivables, less allowance for credit losses1 47,035 44,369 Merchandise inventories, net 672,328 684,502 Prepaid expenses 59,758 58,615 Other current assets 35,152 38,830 Total current assets 941,893 951,744 Fixed assets 2,206,885 2,173,015 Less accumulated depreciation (1,447,180) (1,356,648) Fixed assets, net 759,705 816,367 Operating lease right-of-use assets 1,368,740 1,384,050 Goodwill 980,064 980,297 Trade name 1,025,000 1,025,000 Other long-term assets 201,245 205,694 Total assets $ 5,276,647 $ 5,363,152 LIABILITIES AND EQUITY Current liabilities: Accounts payable and book overdrafts $ 474,496 $ 485,131 Accrued salaries and employee benefits

135,235 101,265 Accrued expenses and other liabilities 196,518 200,278 Current portion of operating lease liabilities 306,507 310,507 Current portion of long-term debt and other lease liabilities 5,095 15,962 Total current liabilities 1,117,851 1,113,143 Senior secured credit facilities, net, excluding current portion 1,575,630 1,576,223 Operating lease liabilities, excluding current portion 1,104,709 1,116,615 Deferred taxes, net 219,574 251,629 Other long-term liabilities 127,400 121,113 Total liabilities 4,145,164 4,178,723 Commitments and contingencies Stockholders’ equity: Class A common stock2 236 231 Class B-1 common stock3 38 38 Class B-2 common stock4 — — Preferred stock5 — — Additional paid-in-capital 2,260,381 2,229,582 Accumulated deficit (1,118,549) (1,047,243) Accumulated other comprehensive (loss) income

(10,623) 1,821 Total stockholders’ equity 1,131,483 1,184,429 Total liabilities and stockholders’ equity $ 5,276,647 $ 5,363,152 (1) Allowances for credit losses are $1,859 and $1,806, respectively (2) Class A common stock, $0.001 par value: Authorized – 1.0 billion shares; Issued and outstanding – 235.8 million and 231.2 million shares, respectively (3) Class B-1 common stock, $0.001 par value: Authorized – 75.0 million shares; Issued and outstanding – 37.8 million shares (4) Class B-2 common stock, $0.000001 par value: Authorized – 75.0 million shares; Issued and outstanding – 37.8 million shares (5) Preferred stock, $0.001 par value: Authorized – 25.0 million shares; Issued and outstanding – none

PETCO HEALTH AND WELLNESS COMPANY, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited and subject to reclassification) 26 Weeks Ended August 3, 2024 July 29, 2023 Cash flows from operating activities: Net loss $ (71,306) $ (16,498) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 99,305 97,919 Amortization of debt discounts and issuance costs 2,435 2,446 Provision for deferred taxes (27,782) (11,002) Equity-based compensation 29,348 46,248 Impairments, write-offs and losses on sale of fixed and other assets 7,069 1,035 Loss on partial extinguishment of debt — 746 Income from equity method investees

(9,077) (6,458) Amounts reclassified out of accumulated other comprehensive (loss) income (2,274) 1,055 Non-cash operating lease costs 207,605 211,576 Other non-operating (income) loss 2,665 (4,614) Changes in assets and liabilities: Receivables (2,083) (16,679) Merchandise inventories 11,769 (23,011) Prepaid expenses and other assets (7,166) (14,237) Accounts payable and book overdrafts (9,644) 97,062 Accrued salaries and employee benefits 34,591 1,221 Accrued expenses and other liabilities 3,015 (1,238) Operating lease liabilities (209,738) (232,518) Other long-term liabilities 2,224 1,212 Net cash provided by operating activities 60,956 134,265 Cash flows from investing activities: Cash paid for fixed assets (60,029) (114,023) Cash paid for acquisitions, net of cash acquired

(259) (2,040) Proceeds from investment 998 10,248 Proceeds from sale of assets 1,019 — Cash received from partial surrender of officers’ life insurance 206 — Net cash used in investing activities (58,065) (105,815) Cash flows from financing activities: Borrowings under long-term debt agreements 201,000 — Repayments of long-term debt (201,000) (60,000) Debt refinancing costs (3,028) — Payments for finance lease liabilities (3,528) (3,349) Proceeds from employee stock purchase plan and stock option exercises 1,630 2,454 Tax withholdings on stock-based awards (3,468) (4,873) Proceeds from issuance of common stock 2,500 — Net cash used in financing activities (5,894) (65,768) Net decrease in cash, cash equivalents and restricted cash

(3,003) (37,318) Cash, cash equivalents and restricted cash at beginning of period 136,649 213,727 Cash, cash equivalents and restricted cash at end of period $ 133,646 $ 176,409 NON-GAAP FINANCIAL MEASURES The following information provides definitions and reconciliations of the non-GAAP financial measures presented in this earnings release to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP). The company has provided this non-GAAP financial information, which is not calculated or presented in accordance with GAAP, as information supplemental and in addition to the financial measures presented in this earnings release that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measures presented in this earnings release. The non-GAAP financial measures in this earnings release may differ from similarly titled measures used by other companies.

The calculations are based on the same accounting principles and generally accepted accounting principles (GAAP) as used by the company. The table shows the company’s financial performance during this period of time. Financial performance is a comprehensive indicator of the company’s ability to generate profits and manage its resources effectively.

(dollars in thousands) 13 Weeks Ended Reconciliation of Net Loss Attributable to Class A and B-1 Common Stockholders to Adjusted EBITDA August 3, 2024 July 29, 2023 Net loss attributable to Class A and B-1 common stockholders $ (24,823) $ (14,606) Add (deduct): Interest expense, net 36,133 36,729 Income tax (benefit) expense (4,651) 6,732 Depreciation and amortization 49,718 48,664 Income from equity method investees (4,191) (3,328) Loss on partial extinguishment of debt — 305 Goodwill impairment — — Asset impairments and write offs 3,561 1,031 Equity-based compensation 11,914 24,119 Other non-operating (income) loss — (1,795) Mexico joint venture EBITDA (1)

9,902 8,544 Acquisition and divestiture-related costs (2) — — Other costs (3) 5,960 6,183 Adjusted EBITDA $ 83,523 $ 112,578 Net sales $ 1,523,755 $ 1,530,734 Net margin (4) (1.6 %) (1.0 %) Adjusted EBITDA Margin 5.5 % 7.4 % (dollars in thousands) Trailing Twelve Months Reconciliation of Net (Loss) Income Attributable to Class A and B-1 Common Stockholders to Adjusted EBITDA August 3, 2024 February 3, 2024 July 29, 2023 Net (loss) income attributable to Class A and B-1 common stockholders $ (1,335,018) $ (1,280,210) $ 36,154 Add (deduct): Interest expense, net 147,282 147,504 132,068 Income tax (benefit) expense

(42,465) (27,613) 24,433 Depreciation and amortization 202,168 200,782 196,177 Income from equity method investees (18,807) (16,188) (14,240) Loss on partial extinguishment of debt 174 920 746 Goodwill impairment 1,222,524 1,222,524 — Asset impairments and write offs 8,867 2,833 1,658 Equity-based compensation 64,959 81,859 81,915 Other non-operating loss (income) 2,552 (4,727) (1,892) Mexico joint venture EBITDA (1) 41,346 38,226 33,583 Acquisition and divestiture-related costs (2) 3,719 — 2,219 Other costs (3) 39,365 35,193 8,860 Adjusted EBITDA $ 336,666 $ 401,103 $ 501,681 Net sales $ 6,221,537 $ 6,255,284 $ 6,165,821 Net margin (4) (21.5 %) (20.5 %) 0.6 % Adjusted EBITDA Margin

5.4 % 6.4 % 8.1 % Adjusted Net Income and Adjusted EPS Adjusted Net Income and Adjusted diluted Earnings Per Share attributable to Petco common stockholders (Adjusted EPS) are considered non-GAAP financial measures under the SEC’s rules because they exclude certain amounts included in the net income attributable to Petco common stockholders and diluted earnings per share attributable to Petco common stockholders calculated in accordance with GAAP. Management believes that Adjusted Net Income and Adjusted EPS are meaningful measures to share with investors because they facilitate comparison of the current period performance with that of the comparable prior period. In addition, Adjusted Net Income and Adjusted EPS afford investors a view of what management considers to be Petco’s core earnings performance as well as the ability to make a more informed assessment of such earnings performance with that of the prior period.

(in thousands, except per share amounts) 13 Weeks Ended Reconciliation of Diluted EPS to Adjusted EPS August 3, 2024 July 29, 2023 Amount Per share Amount Per share Net loss attributable to common stockholders / diluted EPS $ (24,823) $ (0.09) $ (14,606) $ (0.05) Add (deduct): Income tax (benefit) expense (4,651) (0.01) 6,732 0.02 Loss on partial extinguishment of debt — — 305 0.00 Goodwill impairment — — — — Asset impairments and write offs 3,561 0.01 1,031 0.01 Equity-based compensation 11,914 0.04 24,119 0.09 Other non-operating income — — (1,795) (0.01) Other costs (3) 5,960 0.02 6,183 0.02 Adjusted pre-tax (loss) income / diluted (loss) earnings per share

$ (8,039) $ (0.03) $ 21,969 $ 0.08 Income tax (benefit) expense at 26% normalized tax rate (2,090) (0.01) 5,712 0.02 Adjusted Net (Loss) Income / Adjusted EPS $ (5,949) $ (0.02) $ 16,257 $ 0.06 Free Cash Flow Free Cash Flow is a non-GAAP financial measure that is calculated as net cash provided by operating activities less cash paid for fixed assets. Management believes that Free Cash Flow, which measures the ability to generate additional cash from business operations, is an important financial measure for use in evaluating the company’s financial performance. The table below reflects the calculation of Free Cash Flow for the thirteen and twenty-six weeks ended August 3, 2024 compared to the thirteen and twenty-six weeks ended July 29, 2023, respectively.

(in thousands) 13 Weeks Ended 26 Weeks Ended August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023 Net cash provided by operating activities $ 69,370 $ 96,614 $ 60,956 $ 134,265 Cash paid for fixed assets (27,388) (51,973) (60,029) (114,023) Free Cash Flow $ 41,982 $ 44,641 $ 927 $ 20,242 Non-GAAP Financial Measures Footnotes (1) Mexico Joint Venture EBITDA represents 50 percent of the entity’s operating results for all periods, as adjusted to reflect the results on a basis comparable to Adjusted EBITDA. In the financial statements, this joint venture is accounted for as an equity method investment and reported net of depreciation and income taxes because such a presentation would not reflect the adjustments made in the calculation of Adjusted EBITDA, we include the 50 percent interest in the company’s Mexico joint venture on an Adjusted EBITDA basis to ensure consistency. The table below presents a reconciliation of Mexico joint venture net income to Mexico joint venture EBITDA.

13 Weeks Ended (in thousands) August 3, 2024 July 29, 2023 Net income $ 8,822 $ 6,656 Depreciation 6,996 6,443 Income tax expense 3,903 2,364 Foreign currency (gain) loss (380) 395 Interest expense, net 463 1,230 EBITDA $ 19,804 $ 17,088 50% of EBITDA $ 9,902 $ 8,544 (2) Acquisition and divestiture-related costs include direct costs resulting from acquiring, integrating, or divesting businesses. These include third-party professional and legal fees, losses on sales of divestitures, and other integration-related costs that would not have otherwise been incurred as part of the company’s operations. (3) Other costs include, as incurred: restructuring costs and restructuring-related severance costs; legal reserves associated with significant, non-ordinary course legal or regulatory matters; and costs related to certain significant strategic transactions. (4) We define net margin as net income attributable to Class A and B-1 common stockholders divided by net sales and Adjusted EBITDA margin as Adjusted EBITDA divided by net sales.

SOURCE Petco – Investor Relations