Petco Health and Wellness Company Inc (WOOF) 2023 Q1 法說會逐字稿

Good morning, and welcome to Petco's First Quarter 2023 Earnings Conference Call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Cathy Yao, Vice President of Investor Relations.

早上好，歡迎來到 Petco 2023 年第一季度收益電話會議。 （操作員說明）請注意正在記錄此事件。我現在想將會議轉交給投資者關係副總裁 Cathy Yao。

Cathy, you may begin.

凱茜，你可以開始了。

Good morning, everyone, and thank you for joining Petco's First Quarter 2023 Earnings Conference Call. In addition to the earnings release, there is a presentation and infographic available to download on our website at ir.petco.com, summarizing our first quarter 2023 results.

大家早上好，感謝您參加 Petco 的 2023 年第一季度收益電話會議。除了收益發布外，我們的網站 ir.petco.com 上還有一份演示文稿和信息圖可供下載，其中總結了我們 2023 年第一季度的業績。

On the call with me today are Ron Coughlin, Petco's Chief Executive Officer; and Brian LaRose, Petco's Chief Financial Officer. Before they begin, I would like to remind you that on this call, we will make certain forward-looking statements, which are subject to a number of risks and uncertainties that could cause actual results to differ materially from such statements. These risks and uncertainties include those set out in our earnings materials and our SEC filings.

今天和我通電話的是 Petco 的首席執行官 Ron Coughlin； Petco 的首席財務官 Brian LaRose。在他們開始之前，我想提醒您，在這次電話會議上，我們將做出某些前瞻性陳述，這些陳述受到許多風險和不確定性的影響，這些風險和不確定性可能導致實際結果與此類陳述存在重大差異。這些風險和不確定性包括我們的收益材料和美國證券交易委員會備案文件中列出的風險和不確定性。

In addition, on today's call, we will refer to certain non-GAAP financial measures. Reconciliations of these measures can be found in our earnings release and our presentation as well as in our SEC filings. And finally, during the Q&A portion of today's call, we ask that you please keep to 1 question and 1 follow-up.

此外，在今天的電話會議上，我們將參考某些非 GAAP 財務指標。這些措施的對賬可以在我們的收益發布和我們的演示文稿以及我們向美國證券交易委員會提交的文件中找到。最後，在今天電話會議的問答部分，我們請您保持 1 個問題和 1 個跟進。

With that, let me turn it over to Ron.

有了這個，讓我把它交給羅恩。

Thank you, Cathy. Good morning, everyone. We appreciate you joining us today. In Q1, Petco delivered its 18th consecutive quarter of comp sales growth, up 5% with revenue growth also up 5%, and we achieved our 12th consecutive quarter of brick-and-mortar growth. These results demonstrate the successful execution of our strategy through the current environment, the ongoing resilience of both the pet category and the secular trends of humanization and premiumization and Petco's continued delivery of purpose-driven performance.

謝謝你，凱茜。大家，早安。感謝您今天加入我們。在第一季度，Petco 實現了連續第 18 個季度的銷售額增長，增長 5%，收入增長也增長了 5%，我們實現了實體店連續第 12 個季度增長。這些結果表明我們的戰略在當前環境下成功執行，寵物類別的持續彈性以及人性化和高端化的長期趨勢以及 Petco 持續交付以目標為導向的績效。

None of this could have been achieved without the hard work of the approximately 29,000 Petco partners across the country who I want to personally thank for their ongoing dedication and commitment to the health and wellness of pets, pet parents and each other. In the short and medium term, we are laser-focused on executing against our strategic priorities, controlling our controllables and driving further efficiencies and productivity out of our cost structure.

如果沒有全國約 29,000 名 Petco 合作夥伴的辛勤工作，這一切都不可能實現，我要親自感謝他們對寵物、寵物父母和彼此的健康和福祉的持續奉獻和承諾。在短期和中期，我們專注於執行我們的戰略優先事項，控制我們的可控因素並進一步提高成本結構的效率和生產力。

Brian will elaborate on this further. Longer term, we remain confident in the competitive advantages derived from our unique 360-degree care offering delivered through the 3 core pillars of our business: services, a differentiated and comprehensive merchandise mix and our omnichannel capabilities, all tied together by our loyalty and membership programs that benefit pets, pet parents and Petco. Focusing on these core pillars. I'll start with services, where revenue was up double digits in the quarter.

布賴恩將進一步闡述這一點。從長遠來看，我們對通過我們業務的三大核心支柱提供的獨特的 360 度護理服務所帶來的競爭優勢充滿信心：服務、差異化和全面的商品組合以及我們的全渠道能力，所有這些都與我們的忠誠度和會員聯繫在一起有利於寵物、寵物父母和 Petco 的計劃。專注於這些核心支柱。我將從服務開始，該季度的收入增長了兩位數。

By evolving and growing our fully integrated services offering with veterinary grooming and training, we continue to further differentiate our business model through hands-on pet care. Our full-service veterinary business continues to scale. And to be clear, there is not another retailer or an online player in our competitive set with a scaled and own veterinary network, and this is a big differentiator for Petco.

通過發展和壯大我們提供獸醫美容和培訓的完全集成服務，我們繼續通過實踐寵物護理進一步區分我們的商業模式。我們提供全方位服務的獸醫業務不斷擴大。需要明確的是，在我們的競爭對手中，沒有其他零售商或在線玩家擁有規模化的和自己的獸醫網絡，這是 Petco 的一大差異化因素。

Between our clinics that provide convenient and affordable preventative care and our expanding number of vet hospitals to provide a full spectrum of diagnosis and treatment, Petco is well positioned as one of the top 10 veterinary providers in the U.S. In Q1, we saw 20% more pets for vet appointments year-over-year, underscoring our momentum and growth trajectory. A key driver of this is our mobile clinics, which provide a powerful growth lever that enables us to bring even more pets into our ecosystem.

在我們提供方便和負擔得起的預防保健的診所和我們不斷增加的獸醫醫院數量之間，提供全方位的診斷和治療，Petco 是美國排名前 10 位的獸醫供應商之一。在第一季度，我們看到了 20% 以上獸醫預約的寵物數量同比增長，突顯了我們的勢頭和增長軌跡。這方面的一個關鍵驅動因素是我們的流動診所，它提供了強大的增長槓桿，使我們能夠將更多寵物帶入我們的生態系統。

Averaging over 1,300 clinics a week during Q1, up 22% year-over-year, these fast, affordable and convenient clinics that operate extended and weekend hours allow us to meet the ongoing demand for veterinary services in an agile way while delivering robust economics. In the short term, our high-performing clinics are well suited in this environment to address the needs of more cost-sensitive pet parents while also providing a pipeline of incredible veterinary talent to our hospitals.

第一季度平均每週超過 1,300 家診所，同比增長 22%，這些快速、負擔得起和方便的診所在延長和周末營業時間使我們能夠以敏捷的方式滿足對獸醫服務的持續需求，同時提供強勁的經濟效益。在短期內，我們的高性能診所非常適合這種環境，可以滿足對成本更敏感的寵物父母的需求，同時也為我們的醫院提供了令人難以置信的獸醫人才管道。

In turn, we've created a dynamic working environment for veterinarians within our ecosystem that enhances our attractiveness as a flexible employer of choice in a competitive labor market. Similarly, we continue to be extremely pleased with the progress of our full-service vet hospital business. We added a record 375 veterinarians for ecosystem in Q1, up 60% year-over-year and opened 10 new hospitals to reach a total of 257, meaningful progress towards our anticipated 50 to 55 new hospitals this fiscal year.

反過來，我們在我們的生態系統中為獸醫創造了一個充滿活力的工作環境，增強了我們在競爭激烈的勞動力市場中作為靈活雇主的吸引力。同樣，我們繼續對我們提供全方位服務的獸醫醫院業務的進展感到非常滿意。我們在第一季度為生態系統增加了創紀錄的 375 名獸醫，同比增長 60%，並開設了 10 家新醫院，總數達到 257 家，朝著我們本財年預期的 50 至 55 家新醫院的目標邁進了有意義的進展。

In the medium and long term, maturing vet hospitals will increasingly contribute to top and bottom line growth while further supporting our 4-wall economics. In aggregate, our pet care centers with hospitals are seeing a mid-single-digit lift to center store sales after just 1 year. And as a result, PCCs with hospitals have been growing tangibly faster than those without. Brian will touch more on this later.

從中長期來看，成熟的獸醫醫院將越來越多地為收入和利潤增長做出貢獻，同時進一步支持我們的四壁經濟。總的來說，我們的醫院寵物護理中心僅在 1 年後就看到了中心商店銷售額的中等個位數提升。因此，擁有醫院的 PCC 的增長速度明顯快於沒有醫院的 PCC。 Brian 稍後會詳細介紹這一點。

In short, in addition to providing a world-class veterinary care offering, the operational and financial progress we made in both our clinics and hospitals is securing the runway for long-term profitable growth and strengthening our integrated ecosystem. Grooming also generated record sales in the quarter. We continue to increase capacity and efficiencies in our salons. Demand remained high with our knowledgeable and skilled grooming teams delivering a retentive experience while further driving traffic and center store uplift.

簡而言之，除了提供世界一流的獸醫護理服務外，我們在診所和醫院取得的運營和財務進步正在確保長期盈利增長的跑道，並加強我們的綜合生態系統。美容產品在本季度也創造了創紀錄的銷售額。我們繼續提高沙龍的容量和效率。我們知識淵博、技術嫻熟的美容團隊提供令人難忘的體驗，同時進一步推動客流量和中心商店的提升，需求仍然很高。

Combined, our fully integrated service model continues to position us well in the market, offering consumers flexibility and choice across all wallet sizes. Turning to our second pillar. Our differentiated merchandise continues to provide a competitive edge. Total merchandise sales increased in the quarter on a year-on-year basis, led by double-digit growth in consumables. Importantly, our assortment of health-focused premium brands continues to resonate with pet parents and remains an important driver of demand within our ecosystem.

結合起來，我們完全集成的服務模式繼續使我們在市場上處於領先地位，為消費者提供各種錢包大小的靈活性和選擇。轉向我們的第二個支柱。我們的差異化商品繼續提供競爭優勢。在消費品兩位數增長的帶動下，本季度商品總銷售額同比增長。重要的是，我們各種以健康為中心的優質品牌繼續引起寵物父母的共鳴，並且仍然是我們生態系統內需求的重要驅動力。

Specifically in Q1, Fresh Frozen delivered both double-digit sales and customer growth year-over-year. Additionally, our exclusive and exciting custom meals offering with Freshpet gives us the opportunity to capture further share of this rapidly scaling market. Similarly, we continue to see momentum with premium brands, including Science Diet, Royal Canin and Canidae, all up double digits this quarter. At the same time, we're also seeing some value-seeking behaviors in our customer base. For those customers, we saw a demand shift into our own brand offerings such as WholeHearted, providing pet parents with the value-oriented yet health-focused alternative that positions us well competitively.

特別是在第一季度，Fresh Frozen 實現了兩位數的銷售額和客戶同比增長。此外，我們與 Freshpet 一起提供的獨家和令人興奮的定制餐食讓我們有機會在這個迅速擴大的市場中獲得更多份額。同樣，我們繼續看到高端品牌的勢頭，包括 Science Diet、Royal Canin 和 Canidae，本季度均增長了兩位數。與此同時，我們也在客戶群中看到了一些尋求價值的行為。對於這些客戶，我們看到需求轉向了我們自己的品牌產品，例如 WholeHearted，為寵物父母提供以價值為導向但以健康為中心的替代方案，使我們在競爭中處於有利地位。

As a result, WholeHearted continued to grow double digits year-over-year. We also enhanced our position in quality, more affordable consumables. Strength in consumables continued to help offset the transitory impact of discretionary purchasing in supplies and companion animals, which remained down in Q1. We're addressing this in 2 ways: First, we're making sure we meet the needs of more price-sensitive consumers by working with vendors on costing and supplementing our own brand portfolio with high-quality value offerings.

因此，WholeHearted 繼續保持兩位數的同比增長。我們還提高了我們在質量更實惠的消耗品方面的地位。消耗品的強勢繼續幫助抵消了在第一季度仍然下降的用品和伴侶動物的自由裁量採購的暫時影響。我們以兩種方式解決這個問題：首先，我們通過與供應商合作計算成本並用高質量的價值產品補充我們自己的品牌組合，確保我們滿足對價格更敏感的消費者的需求。

Second, we're getting more proactive where we know there is demand. For example, over the last few weeks, while it was extremely warm in the Northwest, we heavily marketed flea and tick. As a result, flea and tick supplies have performed strongly. Turning to the third pillar of our business, our omnichannel model and the structural advantages that it provides.

其次，我們在知道有需求的地方變得更加主動。例如，在過去的幾周里，雖然西北地區非常溫暖，但我們大量銷售跳蚤和蜱蟲。因此，跳蚤和蜱蟲用品表現強勁。轉向我們業務的第三個支柱，我們的全渠道模型及其提供的結構優勢。

Our digital business delivered double-digit sales growth driven by strength in repeat delivery customers, the continued growth of our rapidly scaling ad network, our digital pharmacy and dynamic growth in same-day delivery orders, which more than doubled year-over-year, underscoring the significant competitive moat same-day delivery offers relative to our online-only competitors.

我們的數字業務實現了兩位數的銷售增長，這得益於重複交付客戶的實力、我們快速擴展的廣告網絡的持續增長、我們的數字藥房以及當日交付訂單的動態增長，同比增長了一倍多，強調與我們的在線競爭對手相比，當日送達服務具有顯著的競爭優勢。

Our brick-and-mortar pet care centers continue to provide an engaging and helpful in-store experience with our Petco partners guiding pet parents in the aisles while also delivering a structural and competitive micro distribution advantage for our digital channels. In terms of our people, I am very proud as we experienced stellar Petco partner retention in Q1. In fact, we saw a nearly 800 basis point improvement year-over-year for our full-time partners working in pet care centers, generated through both enhancements to our compensation and benefits and the exciting career opportunities Petco provides for partners working in a passion category like pet.

我們的實體寵物護理中心繼續通過我們的 Petco 合作夥伴在過道中引導寵物父母提供引人入勝且有益的店內體驗，同時還為我們的數字渠道提供結構性和競爭性的微分銷優勢。就我們的員工而言，我感到非常自豪，因為我們在第一季度經歷了出色的 Petco 合作夥伴保留。事實上，我們在寵物護理中心工作的全職合作夥伴同比增長了近 800 個基點，這得益於我們薪酬和福利的提高以及 Petco 為充滿激情的合作夥伴提供的令人興奮的職業機會類別如寵物。

Finally, tying our 3 growth pillars together is our relentless focus on the customer, with our fully integrated health and wellness ecosystem, providing a unified customer experience. Our customer loyalty programs continue to build momentum with our highest value customers and Q1 marked an over 50% year-over-year increase in recurring customer revenue, building on our milestone of $1 billion reached in 2022. Additionally, in Q1, we delivered year-over-year [Nest Pac] growth as we bring pet parents deeper into our ecosystem. Our Vital Care membership program continues to provide clear value for customers while also driving loyalty, especially after consolidating all of our loyalty programs under the Vital Care umbrella earlier this year.

最後，將我們的三大增長支柱結合在一起是我們對客戶的不懈關注，我們完全集成的健康和保健生態系統提供了統一的客戶體驗。我們的客戶忠誠度計劃繼續與我們最高價值的客戶建立勢頭，第一季度的經常性客戶收入同比增長超過 50%，這是我們在 2022 年達到 10 億美元的里程碑。此外，在第一季度，我們交付了年度- 隨著我們讓寵物父母更深入地融入我們的生態系統，[Nest Pac] 實現了逐年增長。我們的 Vital Care 會員計劃繼續為客戶提供明確的價值，同時也提高了忠誠度，尤其是在今年早些時候將我們所有的忠誠度計劃整合到 Vital Care 旗下之後。

Our paid Vital Care Premier customers grew over 100,000 in Q1, ending the quarter with over 580,000 customers. Vital Care Premier is now on track to generate over $100 million a year in recurring revenue on an annualized basis. Our end-of-period total active customer count was roughly flat at 25.1 million, driven by some trip consolidation and lapsed discretionary visits. Concurrently, the value of our customer base continues to build via growth in programs such as Vital Care Premier and repeat delivery, which is showing up in the positive Nest Pac trends we are seeing.

我們的付費 Vital Care Premier 客戶在第一季度增長了超過 100,000 名，本季度末客戶數量超過 580,000 名。 Vital Care Premier 現在有望每年產生超過 1 億美元的經常性收入。我們的期末活躍客戶總數大致持平，為 2510 萬，這是受一些旅行整合和非自願訪問的推動。同時，我們的客戶群的價值繼續通過 Vital Care Premier 和重複交付等計劃的增長而建立，這在我們看到的積極的 Nest Pac 趨勢中得到了體現。

Before I close, I want to take a moment to acknowledge how proud I am that the impact Petco continues to have on our communities and Petco partners. This quarter, together with Petco Love, we saved over 100,000 pet lives and delivered over 240,000 free vaccines to underserved communities through the Vaccinated and Loved initiative. And we've now reunited over 20,000 pets to date through Petco Love Lost. We joined the leadership circle of Open to All, reinforcing our ongoing commitment to fostering safe and discrimination free retail environments for our customers and partners.

在我結束之前，我想花點時間承認我為 Petco 繼續對我們的社區和 Petco 合作夥伴產生影響而感到自豪。本季度，我們與 Petco Love 一起挽救了超過 100,000 隻寵物的生命，並通過“接種疫苗和被愛”計劃向服務欠缺的社區提供了超過 240,000 份免費疫苗。迄今為止，我們已經通過 Petco Love Lost 使 20,000 多隻寵物重聚。我們加入了 Open to All 的領導圈，加強了我們為客戶和合作夥伴營造安全和無歧視零售環境的持續承諾。

And in April, we honored our Epic Achievers, recognizing a select group of high-performing Petco partners for their incredible work over the last year. To conclude, our results underscore the enduring appeal of our unique model and our focus on operational excellence in the current environment. We're incredibly proud of our fully integrated services business, including a veterinary offering as a growth catalyst, our differentiated assortment and the structural advantages of an omnichannel retailer at scale. Combined, these pillars will enable us to capture continued growth, capitalizing on the secular mega trends of humanization and premiumization in the resilient pet category.

4 月，我們表彰了我們的 Epic Achievers，表彰了一組精選的高性能 Petco 合作夥伴在過去一年中所做的出色工作。總而言之，我們的結果強調了我們獨特模式的持久吸引力以及我們在當前環境下對卓越運營的關注。我們為我們完全整合的服務業務感到無比自豪，包括作為增長催化劑的獸醫產品、我們差異化的產品組合以及規模化的全渠道零售商的結構優勢。綜合起來，這些支柱將使我們能夠抓住持續增長的機會，利用彈性寵物類別中人性化和高端化的長期大趨勢。

Now let me pass it over to Brian.

現在讓我把它交給布賴恩。

Thanks, Ron, and good morning, everyone. To build on Ron's remarks, I also want to extend my thanks to our Petco partners and their continued dedication to delivering the very best for pets and pet parents. This mindset, combined with the team's focus on execution and agility in this environment, demonstrates the benefits of the competitive advantages we've been building over the last few years and reinforces the foundation we've laid to drive long-term profitable growth.

謝謝，羅恩，大家早上好。在 Ron 的話的基礎上，我還要感謝我們的 Petco 合作夥伴，感謝他們一直致力於為寵物和寵物父母提供最好的服務。這種心態，加上團隊在這種環境中對執行力和敏捷性的關注，展示了我們在過去幾年中建立的競爭優勢的好處，並鞏固了我們為推動長期盈利增長奠定的基礎。

Looking at the quarter, net revenue was $1.56 billion, an increase of 5% year-over-year. Comparable sales driven by sustained strength in average basket trends grew 5% year-over-year and 10% on a 2-year stack. Total Services grew double digits, driven by the strength in vet and grooming under the leadership of our exceptional services team. I also want to spend some time expanding on Ron's comments on our vet hospitals.

從本季度來看，淨收入為 15.6 億美元，同比增長 5%。在平均籃子趨勢持續強勁的推動下，可比銷售額同比增長 5%，連續 2 年增長 10%。在我們卓越的服務團隊的領導下，在獸醫和美容方面的實力推動了總服務增長兩位數。我還想花一些時間來擴展羅恩對我們獸醫醫院的評論。

At our Investor Day last year, we set out the projected unit economics of our veterinary business with hospitals ramping up from being margin dilutive in the first year to breakeven in year 2 and accelerating to margin accretive by year 5. When thinking about this trajectory, it's helpful to dissect our existing hospitals into 2 primary distinct cohorts. Hospitals that were originally operated as part of our joint venture with Thrive and our own hospitals that we've opened. The oldest of our own hospitals is now reaching 3 years. Since inception in aggregate, those hospitals have outperformed both our model and the earlier cohorts of the Thrive hospitals, which are now roughly in their fifth year.

在去年的投資者日，我們列出了我們獸醫業務的預計單位經濟效益，醫院從第一年的利潤率攤薄上升到第二年的盈虧平衡，並在第五年加速到利潤率增長。考慮這一軌跡時，將我們現有的醫院分成兩個主要的不同隊列是有幫助的。最初作為我們與 Thrive 的合資企業的一部分運營的醫院和我們自己開設的醫院。我們自己的醫院中最老的醫院現在已經有 3 年了。自成立以來，這些醫院的總體表現優於我們的模型和早期的 Thrive 醫院隊列，這些醫院現在大約已經進入第五個年頭。

Both cohorts provide a compounded tailwind to medium- and long-term profitable growth. And on Thrive, we've seen continued positive trajectory post integration.

這兩個群體都為中長期盈利增長提供了複合動力。在 Thrive 上，我們看到整合後持續的積極軌跡。

Additionally, as Ron mentioned, our pet care centers with hospitals in aggregate continue to see a mid-single-digit lift in center store sales after just 1 year relative to those without. Tied together as the weighted average life of our cohorts continues to mature, the outcome has been incrementally positive.

此外，正如 Ron 所提到的，與沒有醫院的寵物護理中心相比，僅僅 1 年後，我們的寵物護理中心與醫院的總體銷售額繼續保持中等個位數的增長。隨著我們隊列的加權平均壽命不斷成熟，結果逐漸變得積極。

Turning to merchandise. Consumables were up 11% in the quarter year-over-year. Strength in consumables was partially offset by the ongoing impact of discretionary purchasing in supplies and companion animals, which were down 8% in Q1. Our digital business showed strength with double-digit sales growth in the quarter. Moving down the P&L. Gross profit was down 50 basis points in the first quarter at $604.5 million. Q1 gross margin of 38.9% was down 230 basis points year-over-year.

轉向商品。消耗品在本季度同比增長 11%。消耗品的強勁勢頭被供應品和伴侶動物的自主採購的持續影響部分抵消，第一季度下降了 8%。我們的數字業務表現強勁，本季度銷售額實現兩位數增長。向下移動損益表。第一季度毛利潤下降 50 個基點至 6.045 億美元。第一季度毛利率為 38.9%，同比下降 230 個基點。

The decline was driven primarily by the mix impact of consumable strength and ongoing supplies and companion animal softness. Our team continues to drive efficiencies by focusing on strategic cost initiatives. I'm pleased to report that in Q1, SG&A as a percentage of revenue improved from 37.8% to 37.1% year-over-year, down 70 basis points demonstrating our cost discipline and a balanced approach to managing the short term while making strategic long-term investments such as raising our entry wage to $15 or above, which, as Ron mentioned, has paid dividends through employee retention.

下降的主要原因是消耗品強度和持續供應以及伴侶動物柔軟度的混合影響。我們的團隊通過專注於戰略成本計劃來繼續提高效率。我很高興地報告，在第一季度，SG&A 佔收入的百分比從 37.8% 同比提高到 37.1%，下降了 70 個基點，這表明我們的成本紀律和管理短期的平衡方法，同時制定戰略長期- 定期投資，例如將我們的入職工資提高到 15 美元或以上，正如羅恩提到的那樣，這已經通過留住員工帶來了紅利。

Q1 adjusted EBITDA was $111 million, down 6.9% from prior year with an adjusted EBITDA margin rate of 7.1%, down 90 basis points year-over-year. Q1 adjusted EPS was $0.06, a decrease of $0.08 from the prior year, driven primarily by a $0.05 year-over-year increase in interest expense. Based on 266 million weighted average fully diluted shares and a normalized effective tax rate of 26%.

第一季度調整後的 EBITDA 為 1.11 億美元，比上年下降 6.9%，調整後的 EBITDA 利潤率為 7.1%，同比下降 90 個基點。第一季度調整後每股收益為 0.06 美元，較上年同期下降 0.08 美元，主要原因是利息支出同比增長 0.05 美元。基於 2.66 億股加權平均完全稀釋股和 26% 的標準化有效稅率。

Turning to our balance sheet. Our liquidity position remains strong. We ended the quarter with $593 million, inclusive of $149 million in cash and cash equivalents and $444 million of availability on our revolving credit facility. Our strong liquidity enabled us to pay down $35 million of principal on our debt in Q1 and an additional $25 million last week. In total, we have paid down $60 million toward our target debt paydown of $100 million for the year.

轉向我們的資產負債表。我們的流動性狀況依然強勁。我們在本季度結束時獲得了 5.93 億美元，其中包括 1.49 億美元的現金和現金等價物以及 4.44 億美元的循環信貸額度。我們強大的流動性使我們能夠在第一季度支付 3500 萬美元的債務本金，並在上週額外支付 2500 萬美元。總的來說，我們已經償還了 6000 萬美元，以實現我們今年 1 億美元的目標債務償還。

Turning to guidance. We continue to see uncertainty in the discretionary environment and anticipate the macro environment to remain fluid. As such, we remain focused on executing on the factors within our control in the business. With that in mind, we are reaffirming our guidance for the full year and continue to expect revenue of $6.150 billion to $6.275 billion, adjusted EBITDA of $520 million to $540 million, interest expense of $145 million to $155 million; adjusted EPS of $0.40 to $0.48 and $225 million to $250 million of capital expenditures. We also continue to expect to add 50 to 55 owned vet hospitals in 2023 and 10 to 15 rural locations, both of which are reflected in our guidance.

轉向指導。我們繼續看到自由裁量環境的不確定性，並預計宏觀環境將保持流動性。因此，我們仍然專注於執行我們在業務控制範圍內的因素。考慮到這一點，我們重申全年的指導方針，並繼續預計收入為 61.5 億美元至 62.75 億美元，調整後的 EBITDA 為 5.2 億美元至 5.4 億美元，利息支出為 1.45 億美元至 1.55 億美元；調整後的每股收益為 0.40 美元至 0.48 美元，資本支出為 2.25 億美元至 2.5 億美元。我們還繼續預計到 2023 年將增加 50 至 55 家自有獸醫醫院和 10 至 15 個農村地點，這兩者都反映在我們的指南中。

Although we typically don't provide quarterly or intra-quarterly commentary and we don't want to establish a precedent, in light of the unique environment, we do want to provide some more detail. Like other retail sector peers, we saw a more cautious consumer beginning in the second half of the first quarter, resulting from banking uncertainty and lower tax refunds, which continues to weigh on discretionary. While our top line growth continues into May, our reaffirmation of guidance is reflective of our desire to remain prudent in this environment.

雖然我們通常不提供季度或季度內評論，並且我們不想樹立先例，但鑑於獨特的環境，我們確實希望提供更多細節。與其他零售業同行一樣，我們看到消費者從第一季度下半年開始變得更加謹慎，這是由於銀行業的不確定性和退稅減少，這繼續對自由裁量權造成壓力。雖然我們的營收增長持續到 5 月，但我們重申指引反映了我們希望在這種環境下保持謹慎。

As such, we expect Q2 EBITDA to be flat to slightly up relative to Q1 EBITDA and continue to anticipate EBITDA to be flat to up in the second half on a year-over-year basis given the year-over-year dynamics of supplies and companion animals. I also want to spend a moment discussing how we're driving additional savings in this environment. We continue to proactively manage costs, including examining real estate needs, optimizing overhead and extracting additional efficiencies out of marketing spend. We remain hyper focused on execution while investing in long-term growth drivers to enhance profitability and create additional shareholder value, including, importantly, supporting our vet hospitals and expanding our digital competitive advantages.

因此，我們預計第二季度 EBITDA 相對於第一季度 EBITDA 持平或略有上升，並繼續預計下半年 EBITDA 將持平至同比上升，因為供應和伴侶動物。我還想花點時間討論一下我們如何在這種環境下推動額外的節省。我們繼續主動管理成本，包括檢查房地產需求、優化管理費用以及從營銷支出中提取額外的效率。我們仍然高度專注於執行，同時投資於長期增長動力以提高盈利能力並創造額外的股東價值，包括重要的是支持我們的獸醫醫院和擴大我們的數字競爭優勢。

Similarly, our continued execution toward working capital optimization provides us confidence to support our balance sheet. We remain confident in our ability to continue to improve free cash flow, not just this year but longer term and to do so without significantly sacrificing strategic investments.

同樣，我們對營運資本優化的持續執行使我們有信心支持我們的資產負債表。我們仍然相信我們有能力繼續改善自由現金流，不僅是今年，而且是長期的，並且在不顯著犧牲戰略投資的情況下這樣做。

To conclude, we remain focused on navigating the short-term through strong execution in this environment while ensuring we are well positioned in the long term to deliver profitable growth in a resilient category through our unique and differentiated business model.

總而言之，我們仍然專注於在這種環境下通過強有力的執行來駕馭短期，同時確保我們在長期內處於有利地位，通過我們獨特和差異化的商業模式在有彈性的類別中實現盈利增長。

Thank you for your time. And with that, we'd be happy to take your questions.

感謝您的時間。因此，我們很樂意回答您的問題。

(Operator Instructions) And our first question comes from Oliver Wintermantel from Evercore ISI.

（操作員說明）我們的第一個問題來自 Evercore ISI 的 Oliver Wintermantel。

Just regarding your -- the commentary on 2Q, Brian, can you clarify that EBITDA number? Is that a year-over-year number that you quoted or was that versus Q1?

關於你的 - 關於 2Q 的評論，布賴恩，你能澄清一下 EBITDA 數字嗎？這是你引用的同比數字還是與第一季度相比？

Versus Q1, Oli. So let me take a couple of things on Q2. So we said in the call that we continue to grow into May. That said, as you heard me comment on the call, like other retail sector peers, we saw some combination of the banking headlines impacting consumer sentiment in the back half of the quarter and that continue to weigh on discretionary. But the comment on EBITDA specifically is we would expect Q2 EBITDA to be flat to slightly up relative to Q1 reported EBITDA.

對陣 Q1，Oli。所以讓我在第二季度做一些事情。所以我們在電話中說，我們將繼續成長到五月。也就是說，正如您聽到我對電話會議的評論一樣，與其他零售業同行一樣，我們看到銀行業頭條新聞的某些組合影響了本季度後半段的消費者信心，並繼續對自由裁量權造成壓力。但對 EBITDA 的評論具體是我們預計第二季度 EBITDA 相對於第一季度報告的 EBITDA 持平或略有上升。

Got it. And then maybe a quick follow-up. Just when you look at the mix of your business, obviously, since pre-pandemic, the growth in consumables made that mix a lot higher versus the supply business. If you look for the rest of the year and that maybe you can tie that into your commentary about the EBITDA number as well. How do you see that playing out? Is there -- do you still think the consumable business has remained strong for the rest of the year and supplies weaker, which then might have a bigger impact on your gross profit margin. So maybe you can tie that into your commentary about EBITDA. What are the drivers of that?

知道了。然後可能會進行快速跟進。就在您查看業務組合時，顯然，自大流行前以來，消耗品的增長使得該組合比供應業務高得多。如果您尋找今年剩餘時間，也許您也可以將其與您對 EBITDA 數字的評論聯繫起來。你怎麼看結果？在那裡 - 你是否仍然認為消耗品業務在今年餘下時間保持強勁並且供應疲軟，這可能會對你的毛利率產生更大的影響。因此，也許您可以將其與您對 EBITDA 的評論聯繫起來。其驅動因素是什麼？

Yes. Good question, Oli. So let me start with consumables where you want -- consumables was up double digit in the first quarter, but so was services. So we've continued to see strength in services. Our grooming business remains really strong. Our vet business model is continuing to scale. Our own hospitals are actually tracking above the model that we laid out, and we talked about kind of that dual cohort tailwind on the call.

是的。好問題，奧利。所以讓我從你想要的消耗品開始——第一季度消耗品增長了兩位數，但服務也是如此。因此，我們繼續看到服務的優勢。我們的美容業務仍然非常強勁。我們的獸醫業務模型正在繼續擴展。我們自己的醫院實際上正在跟踪我們制定的模型，我們在電話中談到了那種雙隊列順風。

If you think about the discretionary categories, if you were to just take our volume, our dollar basis reported number in Q1 and drag that out towards the balance of the year, the comp improves just by nature of the lapping dynamic in the second half of last year. And hopefully, that's a little bit helpful in terms of how to think about the different business segments.

如果你考慮可自由支配的類別，如果你只考慮我們的數量，我們的美元基礎在第一季度報告的數字並將其拖到今年的餘額中，那麼 comp 僅通過下半年的重疊動態來改善去年。希望這對如何考慮不同的業務部門有所幫助。

Our next question comes from Peter Benedict from Baird.

我們的下一個問題來自 Baird 的 Peter Benedict。

Two questions, I guess, I just got them out of the gate. First on just the trend in consumables. You talked about some more value-seeking behavior. Can you maybe expand upon that -- talk about the availability of those value products and just where you're seeing that? Is that in dry? Is that happening in fresh and frozen? Just some more color there. And then secondly, just curious on the promotional tone in your business, particularly around the supplies area. What are you seeing there? Are you taking prices down as you're working on costs with your vendors?

兩個問題，我想，我剛把它們提出來。首先是消耗品的趨勢。你談到了一些更有價值的行為。您能否對此進行擴展 - 談談這些有價值產品的可用性以及您在哪裡看到的？是乾的嗎？這種情況發生在新鮮和冷凍的情況下嗎？那裡還有一些顏色。其次，只是對您業務中的促銷基調感到好奇，尤其是在供應領域。你在那裡看到什麼？在與供應商合作降低成本時，您是否正在降低價格？

Thanks, Peter. First, on food, we continue to see a bifurcation, pets a little different than many other categories. You have a host of customers for whom doing the absolute best thing for their pet is nonnegotiable. So what we're seeing is strong double-digit growth in Fresh Frozen, strong double-digit growth in super premium Kibble like ORIJEN or Taste of the Wild and our Science Diet products. So we continue to see strong growth there.

謝謝，彼得。首先，在食物方面，我們繼續看到分歧，寵物與許多其他類別略有不同。您有許多客戶，對他們來說，為他們的寵物做最好的事情是沒有商量餘地的。因此，我們看到的是 Fresh Frozen 的兩位數強勁增長，ORIJEN 或 Taste of the Wild 以及我們的 Science Diet 產品等超優質 Kibble 的強勁兩位數增長。因此，我們繼續看到那裡的強勁增長。

And in actuality, we continue to revenue mix shift towards those higher-priced products, which is a positive for us, and that's a category of truth as well. That's a decade-long trend. In this current environment, there is a subsegment of customers that are looking for more value. And the first beneficiary of that is WholeHearted. WholeHearted is a premium quality product for a mid-price range. So we're seeing double-digit growth on a WholeHearted, which is obviously good for us in terms of stickiness.

實際上，我們繼續將收入組合轉向那些價格較高的產品，這對我們來說是積極的，這也是一個事實。這是一個長達十年的趨勢。在當前環境下，有一小部分客戶正在尋找更多價值。而第一個受益者是 WholeHearted。 WholeHearted 是一款中等價位的優質產品。所以我們看到 WholeHearted 的兩位數增長，這在粘性方面顯然對我們有好處。

On the lower end, there are some customers that are looking for value. We've supplemented our line in the short term with a product called Diamond, which is a high-quality product. And we'll continue to look to supplement that part of our portfolio. But to make no mistake about it, we're not doing low-quality products. We're not doing products that don't have any margin associated with it. That's the food side of the house.

在低端，有一些客戶正在尋找價值。我們在短期內用一種名為 Diamond 的產品補充了我們的產品線，這是一種高質量的產品。我們將繼續尋求補充我們產品組合的這一部分。但請不要誤會，我們不是在做低質量的產品。我們不做沒有任何利潤的產品。那是房子的食物方面。

On the supply side of the house, we are working with vendors. That's a more disaggregated vendor base. We are working with vendors on the cost side of the house. We are similarly supplementing our line with more value offerings there. In terms of the promotional environment, promotional environment, Q4 to Q1 sequentially was pretty flat. So we're not seeing significant increase in promotional activity at this point.

在房子的供應方面，我們正在與供應商合作。這是一個更加分散的供應商基礎。我們正在與房屋成本方面的供應商合作。我們同樣用更多的價值產品來補充我們的產品線。在促銷環境方面，促銷環境，Q4 到 Q1 依次相當平穩。因此，我們目前沒有看到促銷活動顯著增加。

The next question comes from Steven Forbes from Guggenheim Securities.

下一個問題來自古根海姆證券公司的史蒂文福布斯。

I wanted to start maybe with recurring revenue trends, 50% growth rate, impressive rate again in the first quarter. Curious about what the percentage of total sales is of recurring revenue. How you think about this channel evolving over 2023 given your commentary around the macro? And then as we look out to 2024 and beyond, what are some of the core initiatives that you want to highlight that can really drive this penetration higher as we think about your potential of the business?

我想從經常性收入趨勢開始，50% 的增長率，第一季度再次令人印象深刻。想知道經常性收入佔總銷售額的百分比是多少。鑑於您對宏觀的評論，您如何看待這個渠道在 2023 年的發展？然後，當我們展望 2024 年及以後時，在我們考慮您的業務潛力時，您想強調哪些核心舉措可以真正提高這種滲透率？

Thanks for the question, Steve. Actually, if you go back to maybe our first earnings call, we talked about our desire to build more recurring revenue into our model. At that point, our recurring revenue as a percent of total was pretty small. In Q4, we announced that it had reached over $1 billion, which is a pretty big milestone. Obviously, with the growth number that we put up in Q1, that penetration furthered, and I'll let you do that math. Key drivers of that are repeat delivery, which we're very excited about, and we have a very competitive offer and our [customer sat] on that is very high.

謝謝你的問題，史蒂夫。實際上，如果你回到我們的第一次財報電話會議，我們談到了我們希望在我們的模型中建立更多的經常性收入。那時，我們的經常性收入佔總收入的百分比非常小。在第四季度，我們宣布它已經超過 10 億美元，這是一個相當大的里程碑。顯然，隨著我們在第一季度提出的增長數字，滲透率進一步提高，我會讓你做這個數學。其關鍵驅動因素是重複交付，我們對此感到非常興奮，我們有一個非常有競爭力的報價，我們的 [customer sat] 非常高。

And particularly since we have some products that are exclusive to us and Fresh Frozen, particularly, we're able to be very competitive there. The second piece is Vital Care Premier and our sign-up rate only increased in Q1 versus Q4, which we're really excited about. Consumers see the value in it. They save over $200 on average a month. And for us, we're picking up more share of wallet. So over 30% of our Vital Care Premier customers weren't getting food with us and even more weren't having services with it. So it's a share of wallet play for us. It is very, very strategic for us.

特別是因為我們有一些我們獨有的產品和 Fresh Frozen，特別是，我們能夠在那裡非常有競爭力。第二部分是 Vital Care Premier，我們的註冊率在第一季度僅比第四季度有所增加，我們對此感到非常興奮。消費者看到了其中的價值。他們平均每月節省 200 多美元。對於我們來說，我們正在獲得更多的錢包份額。因此，超過 30% 的 Vital Care Premier 客戶沒有通過我們獲得食物，更多的客戶沒有通過它獲得服務。所以這對我們來說是錢包遊戲的一部分。這對我們來說非常非常具有戰略意義。

As I said, we talked about it a couple of years ago as an aspiration. Now we're delivering on it. And we are very focused on continuing to drive more recurring revenue out of our model. And if you think about the interconnectedness of our model, as we bundle more initiatives like insurance into it, it only gets more powerful. And I think that would only accelerate our recurring revenue as a percent of our mix.

正如我所說，我們在幾年前將其作為一種願望進行了討論。現在我們正在兌現它。我們非常專注於繼續從我們的模型中推動更多的經常性收入。而且，如果您考慮我們模型的相互關聯性，隨著我們將更多計劃（例如保險）捆綁到其中，它只會變得更加強大。而且我認為這只會加速我們的經常性收入占我們組合的百分比。

And then just a quick follow-up, Brian, maybe for you. The second quarter commentary. Can you help us better understand the mix implications, right, of what you're trying to express here because it looks like compares on supplies and companion animals sort of ease in the second quarter. But do you still expect a negative sort of mix impact on gross margin? Or just any contextualization on the margin outlook for the -- second quarter gross margin outlook?

然後只是快速跟進，布賴恩，也許適合你。第二季解說。你能幫助我們更好地理解你在這裡試圖表達的混合含義嗎，因為它看起來在第二季度對供應和伴侶動物的比較有點輕鬆。但您是否仍預計會對毛利率產生負面的混合影響？或者只是對第二季度毛利率前景的利潤率前景的任何背景化？

Yes. I think let me start with we would expect services to continue to remain strong, consumables to continue to remain strong into the second quarter. As I mentioned on the call, overall, we've continued to grow in May. We reiterated the guide for the full year, Steve. And if you go back to the commentary on the call about the intra-quarter dynamics of Q1, we did see in the back half of Q1 some softening in the environment, and therefore, we wanted to be prudent about how we talked about Q2 and reaffirm for the balance of the year.

是的。我想讓我首先說，我們預計服務將繼續保持強勁，消耗品將繼續保持強勁到第二季度。正如我在電話會議上提到的，總體而言，我們在 5 月份繼續增長。史蒂夫，我們重申了全年的指南。如果你回到關於 Q1 季度內動態電話會議的評論，我們確實在 Q1 的後半部分看到了環境的一些軟化，因此，我們希望謹慎地談論我們如何談論 Q2 和重申今年的餘額。

I would just remind everyone on what we've talked about in the past on services. So as services continue to grow, it's relatively neutral on the EBITDA line, but there is P&L geography because the labor is in cost of sales.

我只想提醒大家我們過去在服務方面討論過的內容。因此，隨著服務繼續增長，它在 EBITDA 線上相對中性，但存在 P&L 地域，因為勞動力在銷售成本中。

Our next question comes from Kate McShane from Goldman Sachs.

我們的下一個問題來自高盛的 Kate McShane。

I wondered if you could help us think through traffic versus ticket in the quarter, but then also how you're thinking of that breakdown for the rest of the year?

我想知道您是否可以幫助我們考慮本季度的流量與票務情況，以及您如何考慮今年剩餘時間的細分情況？

Good question. Honestly, we don't think of ourselves as a traditional retailer given the fully integrated model that we have, featuring services, digital and omni. That said, I would tell you that our basket remains healthy, and we're pleased with what we see.

好問題。老實說，鑑於我們擁有以服務、數字和全方位為特色的完全集成模式，我們並不認為自己是一家傳統零售商。也就是說，我會告訴你我們的籃子仍然健康，我們對我們所看到的感到滿意。

I would just build on that. From a traffic standpoint, we're seeing positive trends on the veterinary business, which is bucking industry trends, where we saw 20% more pets this quarter. We're also seeing positive traffic on the grooming side. So those are important areas where we want to be driving traffic and then help the total box, (inaudible) there's some trip consolidation.

我會以此為基礎。從交通的角度來看，我們看到了獸醫業務的積極趨勢，這與行業趨勢背道而馳，本季度我們看到的寵物數量增加了 20%。我們也看到了美容方面的積極流量。所以這些是我們想要推動交通然後幫助總箱的重要領域，（聽不清）有一些旅行整合。

And our second question is just around vet. It sounds like you're seeing some encouraging signs there with the owned vet. And just I wondered if you could maybe double click, you can go into that a little bit more in terms of just what progress you're seeing now that, that is fully owned by Petco, what things are looking like competitively and just how you're doing with regards to the hiring of vets?

我們的第二個問題是關於獸醫的。聽起來您在擁有的獸醫那裡看到了一些令人鼓舞的跡象。我只是想知道你是否可以雙擊，你可以就你現在看到的進展進行更多的討論，這是由 Petco 全資擁有的，看起來有競爭力的東西以及你如何在僱用獸醫方面做了什麼？

I'll start, and maybe Brian and I will tag team. Thanks for the question, Kate. So first, we've had a lot of conversations about hiring. And we've never hired so many vets as we did this past quarter or brought them into our ecosystem in the case of the clinics. And I'll start on the clinics. This is a maybe underappreciated asset. I will tell you that our vet clinic business is very, very strong. It's the right offer at the right time. It's growing rapidly. We have over 1,300 clinics a week and that is high appeal, but also it is a feeder system, a minor leagues, if you will, for our bringing our vets into our hospital. And nobody else has that feeder system, which gives us an absolute advantage.

我會開始，也許布賴恩和我會標記團隊。謝謝你的問題，凱特。所以首先，我們就招聘進行了很多對話。我們從來沒有像上個季度那樣僱用過這麼多獸醫，也沒有將他們帶入我們的診所生態系統。我將從診所開始。這是一項可能被低估的資產。我會告訴你，我們的獸醫診所業務非常非常強大。這是在正確的時間提供的正確的報價。它正在迅速增長。我們每周有超過 1,300 家診所，這很有吸引力，但它也是一個支線系統，一個小聯盟，如果你願意的話，我們將我們的獸醫帶到我們的醫院。沒有其他人擁有那種給我們絕對優勢的饋線系統。

So that's number one. We executed -- we opened 10 new hospitals in the quarter. We're on track for 50 to 55. Our recruiting engine is strong. Our value proposition is working. And we're bringing in some really interesting diagnostic capabilities as well, and that's helping attract that. In terms of other elements of the model, I'll let Brian elaborate.

所以這是第一。我們執行了——我們在本季度開設了 10 家新醫院。我們的目標是 50 到 55。我們的招聘引擎很強大。我們的價值主張正在發揮作用。我們也引入了一些非常有趣的診斷功能，這有助於吸引它。至於模型的其他元素，我會讓 Brian 詳細說明。

Yes. I would say from a margin dollar perspective, when you think about the model, in total, vets are accretive. From a rate standpoint, at maturities, certainly, they're projected to be. And as I said on the call and as you mentioned, Kate, on aggregate, we are ahead of our model on our owned vet cohorts. Over the last 3 years, just a reminder, we've added 176 of our 257 hospitals in the last 3 years.

是的。我會說，從保證金的角度來看，當你考慮這個模型時，總的來說，獸醫是增值的。從利率的角度來看，在到期時，它們當然是預計的。正如我在電話中所說的那樣，正如你提到的，凱特，總的來說，我們在我們自己的獸醫隊列中領先於我們的模型。在過去的 3 年裡，提醒一下，我們在過去 3 年裡增加了 257 家醫院中的 176 家。

So a lot of our hospitals are younger than 3 years. The good news with that is it gives us a lot of runway ahead of us that will allow us to take advantage of the maturity curve of vets and that accretion. And as Ron mentioned, our vet clinic business is such a strong business, and that's helped us contribute to 20% year-over-year increase in vet visits. And so overall, we feel really good about our vet position.

所以我們的很多醫院都不到 3 年。好消息是，它為我們提供了很多跑道，使我們能夠利用老兵的成熟曲線和增長。正如羅恩所說，我們的獸醫診所業務非常強大，這幫助我們為獸醫就診量同比增長 20% 做出了貢獻。總的來說，我們對自己的獸醫職位感覺非常好。

Our next question comes from Seth Basham from Wedbush Securities.

我們的下一個問題來自 Wedbush Securities 的 Seth Basham。

Thanks a lot. It's great to see continued sign-ups for the Vital Care Premier program. I just had a question in terms of the revenue per customer there. Doing the math, it seems that you're getting about $170 per customer annualized. At your Analyst Day last year, I think you indicated you implied $400 spend per member goal. Can you please tell me if that's accurate and what the delta is there?

多謝。很高興看到繼續註冊 Vital Care Premier 計劃。我只是對每個客戶的收入有疑問。算一算，似乎每位客戶的年化收入約為 170 美元。在你去年的分析師日，我想你表示你暗示每個會員目標花費 400 美元。你能告訴我這是否準確嗎？三角洲是多少？

Yes. So let me kind of walk you through it, Seth. So $20 a month is what they pay in a subscription fee. So if you run that out over the balance of the year, you're talking $240. The $400 that we quoted is an enterprise value. So if you think about on an annualized basis, what we're getting from those customers, the subscription is just one part of it. The additional trips and the fact that it's a 3.5x LTV for those customers compared to an average customer of Vital Care. That gives us a greater share of wallet. It gives us greater on-ramp to the overall ecosystem.

是的。因此，讓我來引導您完成它，Seth。所以每月 20 美元是他們支付的訂閱費。因此，如果您在一年中的餘額中用完它，您就是說 240 美元。我們報價的 400 美元是企業價值。因此，如果你按年計算，我們從這些客戶那裡得到了什麼，訂閱只是其中的一部分。額外的行程以及與 Vital Care 的普通客戶相比，這些客戶的 LTV 是 3.5 倍這一事實。這給了我們更大的錢包份額。它為我們提供了進入整個生態系統的更大入口。

Being a Vital Care customer, maybe they weren't doing services with us. Maybe they were a service customer not getting food with us and we're seeing significant incidences of that, which is driving the share of wallet number that Brian cited.

作為 Vital Care 的客戶，也許他們沒有為我們提供服務。也許他們是服務客戶，沒有和我們一起吃東西，我們看到這種情況發生率很高，這推動了 Brian 引用的錢包數量份額。

Very good. And as my follow-up, just thinking about the margin dilution associated with new Vital Care customers. Has that been significant? And how do you expect that to trend going forward?

非常好。作為我的後續行動，只考慮與新的 Vital Care 客戶相關的利潤稀釋。這很重要嗎？您如何看待未來的趨勢？

Yes. When we think about Vital Care, we do look at it as an LTV and share of wallet play, Seth. So from an enterprise margin dollar standpoint, it is very accretive. From a rate standpoint, there's some impact. But when you're talking about 580 Vital Care Premier members on a base of 25 million customers, it's not significant.

是的。當我們考慮 Vital Care 時，我們確實將其視為 LTV 和錢包遊戲份額，Seth。因此，從企業利潤美元的角度來看，這是非常增值的。從利率的角度來看，有一些影響。但是，當您談論基於 2500 萬客戶的 580 名 Vital Care Premier 會員時，這並不重要。

Our next question comes from Anna Andreeva from Needham & Company.

我們的下一個問題來自 Needham & Company 的 Anna Andreeva。

Two quick ones from us. I wanted to follow up on the active customer count flat. I think it's the first time you're not seeing growth in net adds. Could you provide color on that? What are you seeing with churn? And how should we think about net customer growth as we go through '23? And then secondly, great to hear that owned hospitals are tracking ahead of the model. Brian, could you provide just more color on that? Is that on sales or profitability or all of the above? And any notable difference to call out across the portfolio?

來自我們的兩個快速的。我想跟進活躍客戶數量。我認為這是你第一次沒有看到淨增加的增長。你能提供顏色嗎？您對流失有何看法？當我們經歷 23 年時，我們應該如何考慮淨客戶增長？其次，很高興聽到自有醫院正在跟進該模型。布賴恩，你能提供更多顏色嗎？是關於銷售額或盈利能力還是以上所有？整個投資組合有什麼顯著差異嗎？

Thanks for the question. While our customers were flat sequentially due to trip consolidation and lapse in supplies visits, we are seeing strength in [Nest Pac]. And that's really due to the strength of our loyalty programs and driving more share of wallet, which we talked about a little while ago. And some great examples, 31% of Vital Care Premier customers are new to consumables, 36 new to services. So it's driving that share of wallet that I talked about earlier, and again, 3.5x more than average customers.

謝謝你的問題。雖然我們的客戶由於旅行整合和供應訪問中斷而連續持平，但我們看到 [Nest Pac] 的實力。這實際上是由於我們忠誠度計劃的實力和推動更多的錢包份額，我們剛才談到了這一點。還有一些很好的例子，31% 的 Vital Care Premier 客戶是消耗品新手，36 名是服務新手。因此，它推動了我之前談到的錢包份額，而且是普通客戶的 3.5 倍。

So we're making a lot of progress on Nest Pac in an environment where you're seeing some lapsed visits due to the discretionary environment. From an ad standpoint, we have significant levers on our desk. One is marketing and you'll see an exciting new campaign coming out shortly there. Our service model. If you look at our vet customers, 20% of those customers are new to Petco. You look at our rural -- actually, our rural stores have already added 35,000. You see we're early days there. So we have levers on our desk to drive net customer adds. But in the meantime, we're going to continue driving Nest Pac and the value from our customer base.

因此，我們在 Nest Pac 上取得了很大進展，在這種環境中，您會看到一些由於自由支配環境而導致的訪問失敗。從廣告的角度來看，我們的辦公桌上有重要的槓桿。一個是市場營銷，您很快就會看到一個令人興奮的新活動。我們的服務模式。如果你看看我們的獸醫客戶，這些客戶中有 20% 是 Petco 的新客戶。你看看我們的農村——實際上，我們的農村商店已經增加了35,000家。你看我們還處於早期階段。因此，我們的辦公桌上有槓桿來推動淨客戶增加。但與此同時，我們將繼續推動 Nest Pac 和我們客戶群的價值。

Yes. And then on the vet question on -- I would just say a couple of things. You asked about whether that's revenue or profit. If you think about the maturity of a vet business, it's all about scale and utilization. So just by nature, if we're ahead of model, it's going to be both top line and bottom line. You asked about the difference in sort of cohorts. The only thing I would call out is the difference between owned and the ones that we originally opened under the Thrive joint venture. Those were tracking behind model, the own hospitals were tracking ahead of model. Part of the reason we made that acquisition of the additional 50% last year is because we felt like we can improve the performance of the hospitals and get a greater enterprise return for Petco. And if you go back to once we fully integrated those Thrive hospitals, the performance of those hospitals under the Vetco brand have improved.

是的。然後關於獸醫問題——我只想說幾件事。你問的是收入還是利潤。如果您考慮獸醫業務的成熟度，那就全都與規模和利用率有關。因此，從本質上講，如果我們領先於模型，它將成為頂線和底線。您詢問了同類群組的差異。我唯一要指出的是擁有的和我們最初在 Thrive 合資企業下開設的那些之間的區別。那些在模型後面跟踪，自己的醫院在模型前面跟踪。我們去年收購額外 50% 的部分原因是因為我們覺得我們可以提高醫院的績效並為 Petco 獲得更大的企業回報。如果你回到我們完全整合那些 Thrive 醫院的時候，那些 Vetco 品牌下的醫院的業績已經有所改善。

Our next question comes from Zach Fadem from Wells Fargo.

我們的下一個問題來自富國銀行的 Zach Fadem。

Do you think the 7.6% decline in supplies and companion animals, is a fair reflection of the supplies category as a whole? Or have you seen some share shift to mass? and then as you think about the components within the category, any callouts of segments doing well versus particularly challenged? And how should we think about deferral versus just a [divot] for these categories when the macro recovers?

您認為供應品和伴侶動物 7.6% 的下降是否反映了整個供應品類別？還是您看到一些份額轉向大眾？然後當你考慮類別中的組件時，任何細分市場的標註表現良好還是特別有挑戰？當宏觀經濟復甦時，我們應該如何考慮這些類別的延期與 [divot]？

Thanks for the question, Zach. So let me split it into first from a companion animal standpoint that's not really a mass dynamic. So the category -- that's really a category dynamic. In terms of supplies, could there be super low-end products that are going through mass or some of the online kind of more discounted channels. I'm sure, we're focused on higher value profit pools rather than just share for share's sake, and we think we're holding our own against those segments.

謝謝你的問題，扎克。因此，讓我首先從伴侶動物的角度來看，這並不是真正的大眾動力。所以這個類別——這真的是一個類別動態。貨源方面，會不會有超低端的海量產品，或者是一些線上比較優惠的渠道。我敢肯定，我們專注於更高價值的利潤池，而不僅僅是為了分享而分享，而且我們認為我們正在對付這些細分市場。

And I think evidence of that is our Reddy brand where we're growing nearly double digits on our Reddy brand. So again, we're focused on higher value. We're focused on where there is a profit pool. So might there be some things underneath where there's a profit pool? Sure, but that's not where we're focused. But that said, we believe there is profit to be had on some of the value segments. And as I said, we're both supplementing our line as well as working with those vendors to reduce cost so that we could be more competitive on some of those products.

我認為這方面的證據就是我們的 Reddy 品牌，我們的 Reddy 品牌增長了近兩位數。因此，我們再次專注於更高的價值。我們專注於有利潤池的地方。那麼在有利潤池的地方下面可能有一些東西嗎？當然可以，但這不是我們關注的重點。但話雖如此，我們相信某些價值細分市場可以獲得利潤。正如我所說，我們既在補充我們的產品線，也在與這些供應商合作以降低成本，這樣我們就可以在其中一些產品上更具競爭力。

Okay. Great. And then on your services business, still growing nicely. Could you talk about the contribution across grooming, Vetco and vet hospitals? And as you look at 2023 and into '24, can you help us think through the evolution of sales and EBITDA growth contribution from these businesses?

好的。偉大的。然後是您的服務業務，仍然增長良好。你能談談美容、Vetco 和獸醫醫院的貢獻嗎？當您展望 2023 年和 24 年時，您能否幫助我們思考這些業務的銷售額和 EBITDA 增長貢獻的演變？

Yes. I probably won't get as specific as you want, Zach. But let me walk through it. By nature, total vet is going to have a higher growth rate than the other subcomponents of services, just given the fact that we're adding hospitals every year, right? So if you look at overall revenue growth that's going to be growing faster. Vetco, we don't disclose that overall growth number, but we continue to scale that business at very high utilization. It's been a great business for us. If we think about the overall sort of growth rate going forward, you'd expect those dynamics to continue to play out as long as we keep adding vets.

是的。扎克，我可能不會像你想要的那樣具體。但是，讓我走過它。從本質上講，考慮到我們每年都在增加醫院，總獸醫的增長率將高於服務的其他子組成部分，對嗎？因此，如果你看一下整體收入增長將會更快。 Vetco，我們沒有透露總體增長數字，但我們繼續以非常高的利用率擴展該業務。這對我們來說是一項偉大的事業。如果我們考慮未來的整體增長率，你會期望只要我們不斷增加獸醫，這些動力就會繼續發揮作用。

Our next question comes from Steven Zaccone from Citi.

我們的下一個問題來自花旗銀行的 Steven Zaccone。

I wanted to ask on the cadence of the year. At this point last year, we were talking about the fact that sequentially in the second quarter, you typically see revenue increase, whereas this year, it looks like it's going to be down sequentially just based on your commentary about May. So could you just help us talk about the balance of the year, how should we think about that second quarter? And then Brian, as you think about the puts and takes on the top line to get you maybe the high end versus the low end, what are the big factors in the second half of the year?

我想問一下今年的節奏。去年此時，我們在談論這樣一個事實，即在第二季度，你通常會看到收入增加，而今年，根據你對 5 月份的評論，收入似乎會連續下降。那麼你能不能幫我們談談今年的餘額，我們應該如何考慮第二季度？然後布賴恩，當你考慮看跌期權並在頂線獲得高端與低端時，今年下半年的重要因素是什麼？

Yes. Thanks for the question, Steve. Let me first start with we continue to grow. We made the comment on the call that in May, we've continued to see growth, and we would expect that to continue. The comments on Q2 are more to do with what I mentioned on the call about the back half of Q1. So we did see a shift in the back half of the first quarter. And to the extent that continues into Q2, I think it's best for us to remain prudent at this time.

是的。謝謝你的問題，史蒂夫。讓我首先從我們繼續成長開始。我們在 5 月份的電話會議上發表評論說，我們繼續看到增長，我們預計這種情況會繼續下去。關於 Q2 的評論更多地與我在電話會議上提到的關於 Q1 後半部分的內容有關。所以我們確實看到了第一季度後半段的轉變。就持續到第二季度的情況而言，我認為此時我們最好保持謹慎。

The biggest dynamic in terms of half 1 to half 2 is the discretionary category. But make no mistake, if you think about what we're banking on for second half, there's not a bank on an enormous recovery, but rather if you again take the dollar value of what we reported in discretionary in Q1 and you drag that out Q2 to Q3 to Q4, the comp in that category will improve just by nature of the lapping dynamics.

1 對 2 半的最大動態是自由裁量類別。但是別搞錯了，如果你想想我們下半年的期望，沒有一家銀行會出現巨大的複蘇，而是如果你再次採用我們在第一季度報告的可自由支配的美元價值，然後把它拖出去Q2 到 Q3 到 Q4，該類別中的 comp 將僅通過研磨動力學的性質來改善。

Okay. Fair enough. We haven't heard about the farm and pet supply this quarter. How is that progressing overall? And then just remind us how many of those stores will you have by year-end?

好的。很公平。我們還沒有聽說本季度的農場和寵物供應情況。總體進展如何？然後提醒我們到年底您將擁有多少家這樣的商店？

Thanks, Steve. The rural pet care centers are doing very well. We're really encouraged. They are performing above our expectations. And this is important because the $7 billion opportunity for us and $7 billion and growing. We closed the quarter with 8 rural PCCs. We opened 3 in Q1 making meaningful progress towards our 10% to 15%, which we said we would open this year. I mentioned this earlier, but I have to admit it's surprised even me, 35,000 new customers to Petco from this initiative already, which is really, really exciting.

謝謝，史蒂夫。農村寵物護理中心做得很好。我們真的很受鼓舞。他們的表現超出了我們的預期。這很重要，因為我們有 70 億美元的機會，而且 70 億美元還在增長。我們在本季度結束時擁有 8 個農村 PCC。我們在第一季度開設了 3 個，朝著 10% 到 15% 的目標取得了有意義的進展，我們說我們將在今年開業。我之前提到過這一點，但我不得不承認連我自己都感到驚訝，因為這項計劃已經有 35,000 名新客戶加入 Petco，這真的非常令人興奮。

This -- after earnings last quarter, I stopped in Glasgow, Kentucky on my way back. And while I saw a great dog and cat products in supplies, I even got my chocolate lab, Yogi, a new Carhartt harness while I was there. But I was really excited to see the bovine, the equine, we even had some horses in the front parking lot as if it was stage. So this is a great extension of our PCCs and great extension of our merchandise as well. We're bringing some of those products on in terms of our online product assortment. So very exciting thus far ahead of our model.

這——在上個季度的收益之後，我在回來的路上在肯塔基州的格拉斯哥停留。當我在用品中看到很棒的貓狗產品時，我什至還買了我的巧克力實驗室 Yogi，這是我在那裡時的新 Carhartt 背帶。但是看到牛、馬，我真的很興奮，我們甚至在前面的停車場裡放了一些馬，就像在舞台上一樣。因此，這是我們 PCC 的一個很好的擴展，也是我們商品的一個很好的擴展。我們正在根據我們的在線產品分類推出其中一些產品。非常令人興奮，遠遠領先於我們的模型。

Our next question comes from Greg Sommer from Gordon Haskett.

我們的下一個問題來自 Gordon Haskett 的 Greg Sommer。

I just wanted to dig into the comment about the second half of the quarter being a little more cautious from the consumer. And I was just curious if that was more so traffic being a little softer across the business? Or if that was just more consumer behavior, either from like a category standpoint or customers looking for more value?

我只是想深入了解消費者對本季度下半年更加謹慎的評論。我只是很好奇，這是否會導致整個企業的流量變得更加疲軟？或者，如果這只是更多的消費者行為，無論是從品類的角度還是從客戶尋求更多價值的角度來看？

Yes. It was more a consumer behavior standpoint. Greg, if you think about what happened in the overall environment from the banking headlines to perhaps to a lesser degree, lighter tax refunds, it's not dissimilar to what you've heard from other retail sector peers. So (inaudible) talk about the consumer sentiment.

是的。這更多是從消費者行為的角度來看。格雷格，如果你想想從銀行業的頭條新聞到整體環境中發生的事情，也許在較小程度上，更輕的退稅，這與你從其他零售業同行那裡聽到的並沒有什麼不同。所以（聽不清）談論消費者情緒。

Okay. I just had a quick follow-up as well on pricing. So before you guys said that you believe the most majority of the pricing had already come through, although there could be pockets. Just curious if that's still kind of anticipation for the remainder of the year.

好的。我剛剛對定價進行了快速跟進。所以在你們說你們相信大部分定價已經通過之前，儘管可能會有口袋。只是好奇這是否仍然是今年剩餘時間的預期。

Yes. So first, the pricing that we took is sticky, which is good news. And second, the majority of pricing has come through in terms of the vendors that we engage with, the scale vendors. We know that to be a truism. And as I said, on the supply side of the house, where it's a more disaggregated vendor base, there's probably more deflationary opportunities than inflationary opportunities.

是的。所以首先，我們採用的定價是有粘性的，這是個好消息。其次，大部分定價都是根據我們與之合作的供應商，規模供應商來進行的。我們知道這是不言而喻的。正如我所說，在房屋的供應方面，供應商基礎更加分散，通貨緊縮的機會可能多於通貨膨脹的機會。

Our next question comes from Michael Lasser from UBS.

我們的下一個問題來自瑞銀集團的 Michael Lasser。

You indicated that the bulk of the comp was driven by growth in average transaction size, so how does that break down between like-for-like inflation and more items in the basket due to trip consolidation. And if the majority of it was inflation, how is that going to impact the flow of the comp over the next few quarters as you start to lap some of the price increases that you took last year? I have one follow-up after that.

您表示大部分補償是由平均交易規模的增長推動的，那麼由於旅行整合，這種情況如何在同類通貨膨脹和籃子中的更多項目之間分解。而且，如果其中大部分是通貨膨脹，那麼當您開始迴避去年的部分價格上漲時，這將如何影響未來幾個季度的補償流量？之後我有一個跟進。

Yes. Let me start with consumables, Michael. We grew in units. So when you think about consumables growth, it wasn't all driven by pricing equation, we grew in units. You have to also subsegment our growth into the different components. Services was really, really strong. Grooming business, the vet business continued to grow, and that includes our Vetco clinic. So you've got growth in services, growth in consumables, unit growth in consumables and we've talked about discretionary.

是的。讓我從消耗品開始，邁克爾。我們成群結隊地成長。因此，當您考慮消耗品的增長時，並不完全由定價方程式驅動，我們以單位增長。您還必須將我們的增長細分為不同的組成部分。服務真的非常強大。美容業務、獸醫業務繼續增長，其中包括我們的 Vetco 診所。所以你有服務的增長，消耗品的增長，消耗品的單位增長，我們已經談到了自由裁量權。

Okay. And my follow-up question is, you've made the case in the past that typically when you enter these periods of softness in the supplies category the last 5 or 6 quarters. Is it still your expectation that, that's the case, especially as you laid out the math that simply by getting to easier comparisons in the back half of the year that the growth rate should start to stabilize. And is this the new norm where the penetration of supplies is structurally lower and given the margin dynamics associated with that? How do you look at your long-term profitability profile in light of what could be a lower business that's more profitable?

好的。我的後續問題是，你過去曾提出過這種情況，通常是在過去 5 或 6 個季度進入供應品類的這些疲軟時期時。你是否仍然期望，情況就是這樣，特別是當你簡單地通過在今年下半年進行更容易的比較來計算增長率應該開始穩定時。考慮到與此相關的利潤動態，這是供應滲透率在結構上較低的新常態嗎？考慮到利潤較低但利潤更高的業務，您如何看待您的長期盈利狀況？

Thanks for the question. For -- let me establish a couple of facts. First of all, if you look at on a 3-year basis, our supplies business is up double digits. If you look at many categories, that's not the case. They're now turning red versus 3 years ago. Our supplies business is up on a 3-year basis, double digits. The second thing is we don't see a fundamental shift in mix on a long-term basis and neither do the experts and projectors that we see.

謝謝你的問題。因為 - 讓我確定幾個事實。首先，如果以 3 年為基礎來看，我們的耗材業務增長了兩位數。如果你看很多類別，情況並非如此。與 3 年前相比，它們現在變紅了。我們的耗材業務連續 3 年以兩位數的速度增長。第二件事是我們沒有看到長期的基礎上的根本轉變，我們看到的專家和放映員也沒有看到。

You have 2 dynamics that are bleeding into the dynamics today. The first, you have a life stage of pet dynamic and the second is you have a macroeconomic dynamic. The life stage of pet, and we talked about this a couple of years ago is heavy on supplies in the initial couple of years and then -- there we go. There's a good example.

你有 2 個動態正在滲入今天的動態。首先，你有一個寵物動態的生命階段，第二個是你有一個宏觀經濟動態。寵物的生命階段，我們幾年前談到過這個問題，在最初幾年供應很重，然後 - 我們開始了。有一個很好的例子。

He's excited about your answer, Ron. He's excited.

他對你的回答很興奮，羅恩。他很興奮。

I was looking for a model for my answer there, and I got one. And then more food year 2, year 3 and then it stabilizes and take my dog Yogi. We bought lots of supplies, crates and things like that and now he's already up to 50 pounds and he's eating more food every single day. So that is 1 dynamic that has impacted things right now. And the second dynamic is the current economic environment, which historically has impacted discretionary and then it rolls off, and I'll come to the 5 to 6 quarters.

我在那裡尋找一個模型作為我的答案，我得到了一個。然後在第 2 年、第 3 年更多的食物，然後它穩定下來並帶走我的狗 Yogi。我們買了很多補給品、板條箱之類的東西，現在他已經重達 50 磅，而且他每天都在吃更多的食物。所以這是一種影響現在事物的動態。第二個動態是當前的經濟環境，從歷史上看，它影響了自由裁量權，然後逐漸減少，我將談到第 5 到 6 個季度。

So from a long-term structural standpoint, we don't see a major shift in the relative size of the categories. We do see a shift within our portfolio because of the nature of the rapid build-out of our services. And again, services has a P&L geography dynamic but services will be more and more of our mix as we go forward. As to the 5- to 6-quarter element, if you look at November, December, and compare that to January, February, we were exactly on that trajectory.

因此，從長期結構的角度來看，我們看不到類別的相對規模發生重大變化。由於我們服務快速擴展的性質，我們確實看到了我們產品組合的轉變。同樣，服務具有 P&L 地理動態，但隨著我們前進，服務將越來越多地成為我們的組合。至於 5 到 6 季度的元素，如果你看看 11 月、12 月，並將其與 1 月、2 月進行比較，我們就恰好在那個軌道上。

Historically, when the category has gone through recessions, first, the category has grown about 5 to 6 points, which lines up. Consumables hangs right in there, and then there's a temporary hit to supplies. And it tends to start it's come back 5 to 6 quarters out. We saw that in January, February, the trends in January, February were a nice improvement versus November, December, and it was following historical patterns.

從歷史上看，當該品類經歷衰退時，首先，該品類增長了大約 5 到 6 個點，這是一致的。消耗品就掛在那裡，然後供應品會暫時受到影響。它往往會在 5 到 6 個季度後開始回歸。我們看到，在 1 月、2 月，1 月、2 月的趨勢與 11 月、12 月相比有了很好的改善，並且遵循歷史模式。

And then we had the combination of the banking and some of the other dynamics with tax refunds, et cetera, and that abated a bit. We're confident in the mid to long term that normalizes. But again, the short-term macro environment had a moderating influence on that.

然後，我們將銀行業和其他一些動態與退稅等結合起來，這種情況有所減弱。我們對中長期正常化充滿信心。但同樣，短期宏觀環境對此產生了緩和影響。

Actually, the last thing I would say on that is we're not passengers on the bus. We're taking actions across advertising and across assortment across promotional activity to make sure we're driving. Those programs as well as our in-store and online activities to drive supply sales, and we have a lot of confidence in our ability to shape our own destiny.

實際上，我最後要說的是我們不是公共汽車上的乘客。我們正在跨廣告和跨促銷活動的分類採取行動，以確保我們在推動。這些計劃以及我們推動供應銷售的店內和在線活動，我們對自己塑造自己命運的能力充滿信心。

(Operator Instructions) And our next question comes from Simeon Gutman from Morgan Stanley.

（操作員說明）我們的下一個問題來自摩根士丹利的 Simeon Gutman。

Ron and Brian, my first question, 2 parts. They're not really related. The first is on the consumer and what you're seeing. It seems like the consumer has been trending a little worse and we get the comments towards the end of your quarter. Has that stabilized? Or we're still trending and we haven't felt the bottom? And then the second part of this question is you mentioned the majority of the gross margin was mix. Can you either quantify or what the other factors was anything in terms of price and promotion and the [GM] weakness?

Ron 和 Brian，我的第一個問題，分為 2 個部分。他們並沒有真正的關係。第一個是關於消費者和你所看到的。似乎消費者的趨勢變得更糟了，我們在你們季度末收到了評論。穩定了嗎？或者我們仍在趨勢中，我們還沒有觸底？然後這個問題的第二部分是你提到的大部分毛利率是混合的。您能否量化價格和促銷以及 [GM] 弱點方面的其他因素？

Thanks, Simeon. Let me go back to where I started on -- the category dynamic is a bifurcation. Actually, they break into 3 pieces. Services continues to be robust, which is super strategic for us. We're putting a lot of capital into the vet hospitals. We're bucking industry trends. Services continues to be robust regardless of the macro environment. Now on merchandise, we're seeing a bifurcation. We continue to see strong sales on our premium products. That's a timeless trend, and that continues during this time period.

謝謝，西蒙。讓我回到我開始的地方——類別動態是一個分叉。實際上，它們分成 3 塊。服務繼續保持強勁，這對我們來說具有超級戰略意義。我們正在向獸醫醫院投入大量資金。我們正在逆行行業趨勢。無論宏觀環境如何，服務都將繼續保持強勁。現在在商品上，我們看到了分歧。我們繼續看到我們優質產品的強勁銷售。這是一個永恆的趨勢，並且在這段時間內仍在繼續。

In terms of the value seeking, I already talked about that. I would say that the trend that we saw at the back half of Q1 has continued into Q2. We're launching initiatives and the marketing campaign I talked about -- and that's what we're seeing as of right now, which is why we were prudent in our guidance.

關於價值追求，我已經講過了。我想說的是，我們在第一季度後半段看到的趨勢一直持續到第二季度。我們正在發起我談到的舉措和營銷活動——這就是我們目前所看到的，這就是為什麼我們在我們的指導中保持謹慎。

Yes. And Simeon, when we talk about the majority impact of the impact being affected by mix and gross margin, what we're really talking about there is that mix dynamic between discretionary and consumables. The only other thing I would call out and remind you of is the mix impact by business, primarily services. Anytime services is strong, and we are very happy when it is. There is a margin rate impact that, quite honestly, is okay for us because if you look at EBITDA dollars, EBITDA dollars, EBITDA rate in the services business are very, very attractive. So service is growing strong, it is good news for the business.

是的。 Simeon，當我們談論受組合和毛利率影響的主要影響時，我們真正談論的是非必需品和消耗品之間的混合動態。我要提醒您的唯一另一件事是業務（主要是服務）的混合影響。任何時候服務都很強，我們很高興。有一個保證金率的影響，老實說，對我們來說是好的，因為如果你看一下 EBITDA 美元，EBITDA 美元，服務業務中的 EBITDA 率非常非常有吸引力。所以服務增長強勁，這對企業來說是個好消息。

Okay. My second question is on the shape of the year. It felt like your initial guidance for the full year on EBITDA felt like there was some conservatism in it. I don't know how the first half is playing out versus expectations. I get the sense maybe it's coming in a little bit lighter given some of the dynamics you mentioned. We are lapping these items that you mentioned in the second half, but it also feels like maybe the second half has gotten a little bit steeper. Is that fair? Or we're just taking some of that conservatism from the model that you had in the first place?

好的。我的第二個問題是關於今年的形勢。感覺你對全年 EBITDA 的初步指導感覺有些保守。我不知道上半場的表現如何與預期相反。考慮到你提到的一些動態，我覺得它可能會變得更輕一些。我們正在研究您在下半年提到的這些項目，但也感覺下半年可能變得更陡峭了。這公平嗎？或者我們只是從您最初擁有的模型中採取一些保守主義？

No, I don't think that's fair, Simeon, to be honest. I think if you look at what happened in Q1, I think Q1 was ahead of our expectations. The commentary on Q2, I think, is the prudent commentary to make at this time given what we saw in the back half of Q1. So we reaffirmed our guide for the year given the normal puts and takes. We just guided 60 days ago. We think it's the right call to reaffirm at this point in time. But I don't think I would say Q1 performed worse, it performed better.

不，老實說，我認為這不公平，Simeon。我想如果你看看第一季度發生的事情，我認為第一季度超出了我們的預期。我認為，鑑於我們在第一季度的後半部分看到的情況，對第二季度的評論是此時做出的謹慎評論。因此，鑑於正常的看跌期權，我們重申了今年的指南。我們剛剛在 60 天前指導過。我們認為在這個時間點重申是正確的。但我不認為我會說 Q1 表現更差，它表現更好。

This concludes our question-and-answer session. I would like to turn the conference back over to Ron Coughlin for any closing remarks.

我們的問答環節到此結束。我想將會議轉回 Ron Coughlin 的閉幕詞。

Thank you, operator. To close today's call, I want to reinforce the Petco operates in a highly resilient category with an ecosystem that is both unique and delivers on pet parents' desire for an integrated health and wellness partner. In this environment, we're focused on progressing our key long-term growth strategies like vet and controlling our controllables. Of course, none of this would happen without our incredible Petco partners to whom I'm grateful for providing us with an incredible, competitive advantage every single day. Thank you for your time.

謝謝你，運營商。為了結束今天的電話會議，我想強調 Petco 在高度彈性類別中的運營，其生態系統既獨特又滿足寵物父母對綜合健康和保健合作夥伴的渴望。在這種環境下，我們專注於推進我們的關鍵長期增長戰略，例如審查和控制我們的可控因素。當然，如果沒有我們令人難以置信的 Petco 合作夥伴，這一切都不會發生，我感謝他們每天為我們提供令人難以置信的競爭優勢。感謝您的時間。

That concludes our first quarter 2023 earnings conference call. Thank you.

我們的 2023 年第一季度收益電話會議到此結束。謝謝。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。