Petco's Stock Surges in Third Public Debut in Its 56-Year History

Petco ($WOOF) on Thursday went public for the third time in its 56-year history following a banner year for the pet care and supply industry, which benefited from remote-working pet owners spending more time than ever with their animal companions.  

"It was always the plan to go public. The question was when not if," CEO Ron Coughlin told Cheddar. "The market … is strong and it's going to be strong well into the future, so it was a great time to do it." 

The company debuted on the Nasdaq at $26 per share and hit $29 at the close, up 63 percent from the initial offering. Coughlin said Petco will cut its debt in half with this transaction.

This return to public markets places Petco in direct competition with Chewy, the online pet product retailer owned by industry giant PetSmart, which had a successful IPO in 2019 

"We're playing a different hand," he said. "Our hand is being the pet parent's partner for the health and wellness of their pet."

Coughlin touted the company's suite of veterinary services as well as its training and grooming offerings, which "neither the online players or the mass players" have.

This emphasis on the health and wellness of pets was also evident in Petco's announcement last year to no longer sell shock collars at its stores. 

The executive also highlighted the company's focus on selling higher-quality pet food. 

"Actually all of the growth of the pet food category is going to come from premium and super-premium, where we have particular strength." 

Petco, which has 1,400 brick-and-mortar locations across the U.S., is banking on the continued customer value in maintaining a physical presence. 

"Our pet care centers are the salons for pets. They're the hospital for pets. In some ways, they're the schools for pets with our training," he said. 

The company's in-house research showed that 39 percent of customers want an omnichannel experience: both online and retail offerings.  

"I know this whole theory about retail locations being albatrosses, but for us, they are absolutely, absolutely a competitive advantage," Coughlin said.

More In Business

Drones are Altering Farming and Growing Food Forever

When one thinks of agriculture, it brings up thoughts of tractors, yet unmanned drones have found one of their newest homes in agriculture.

Why Aren’t There More IPOs? Blame Fed Chair Powell (And Those Rates)

After the 2021 boom, IPO activity slowed down significantly, in part due to monetary policy – but things are getting moving again with tech-friendly companies like Iboutta and Rubrik making a public debut.

With An Increasing Demand In Mental Health Services, This CEO Wants To Use Tech To Change the Therapy Game

With an increasing demand for mental health services, one person wanted to change the therapy game. In 2017, CEO Alex Katz founded Two Chairs, a company that uses technology to match patients with the right therapist.

You Can Actually Lose Money on Real Estate (Even in This Market)

Not only is April Financial Literacy Month, it’s also the kickoff of the spring homebuying season. So now is the time to make sure you have a financial plan in place – and why it might not be wise for that to include buying your first home.

This Region Has the U.S. Beat When it Comes to Fighting Inflation

While the U.S. may slowly be on the path to lowering inflation (and therefore interest rates), Europe has thoroughly trounced America, putting it on the path to lower rates by this summer.

Housing Market Reports Are Here: April Insights and Economic Impact

April's release of the monthly Housing Starts and Building Permits reports by the Census Bureau provides crucial insights into the construction activity in the housing market. These reports are an economic indicator, shedding light on the current state of the housing market and its broader economic impact.

Load More