WOOF 8-K
Petco Health & Wellness Company, Inc. (WOOF)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On September 2, 2026, Petco Health and Wellness Company, Inc. (the “Company”) issued a press release disclosing its financial results for the quarter ended August 1, 2026. The full text of the press release is attached to this Current Report on Form 8-K as Exhibit 99.1.
Item 7.01 Regulation FD Disclosure.
The Company has scheduled a webcast call at 4:15 p.m. Eastern Time on September 2, 2026 to discuss the Company’s financial results for the quarter ended August 1, 2026. In addition to the press release, an earnings presentation will be made available on the Company’s investor relations page at ir.petco.com. A replay of the webcast call will also be made available on the Company’s investor relations page approximately two hours after the webcast call.
The information being furnished pursuant to Item 2.02, including Exhibit 99.1, and Item 7.01 of this Current Report on Form 8-K shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise be subject to the liability of that section, and shall not be incorporated by reference into any other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit Number |
Description |
99.1 |
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104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Petco Health and Wellness Company, Inc. |
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Date: |
September 2, 2026 |
By: |
/s/ Giovanni Insana |
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Name: Title: |
Giovanni Insana |
Exhibit 99.1
Petco Reports Second Quarter 2026 Results
2nd Consecutive Quarter of Positive Comparable Sales Growth
Delivered Q2 Profitability Ahead of Outlook
Announces $75 Million Debt Prepayment, Progressing Toward 2x Leverage1 Target
Reaffirms Fiscal 2026 Outlook
San Diego, September 2, 2026 – Petco (Nasdaq: WOOF), the retailer “where the pets go” to find everything they need to live their best lives, today reported its second quarter 2026 financial results.
Joel Anderson, Chief Executive Officer of Petco, stated, “We delivered stronger than expected profitability in the quarter while achieving our second consecutive quarter of positive comps. We were pleased to see growth in consumables, which highlights that our 'Reach for the Sky' strategy is gaining traction. Looking ahead to the second half, we are positioned to benefit from several growth drivers and are pleased to reaffirm our full-year sales and profitability outlook. We remain confident in our ability to generate sustainable, long-term growth.”
Q2 2026 Overview
In the second quarter of 2026, the Company received substantially all IEEPA tariff refunds related to tariffs paid under IEEPA in 2025 and 2026. All results below include a net benefit of $6.8 million related to such refunds, representing the proceeds net of investments to propel the repositioning of new assortments for future growth, and to a lesser degree, offset incremental fuel and tariff expense in Q2.
For the second quarter of 2026 compared to the second quarter of 2025:
Sabrina Simmons, Chief Financial Officer of Petco, added, “We are pleased to deliver another quarter of positive comps and deliver on our bottom-line commitments as we execute on our economic model. Subsequent to the second quarter, we voluntarily prepaid an additional $75 million in debt, bringing our total prepayments to $170 million in the past nine months. Looking ahead, we are pleased to reaffirm our full-year sales and Adjusted EBITDA outlook, reflecting confidence in our second half strategic initiatives while remaining thoughtful about balancing the dynamic backdrop while investing behind our growth priorities.”
Q2 2026 Balance Sheet and Cash Flow
2026 Outlook
The Company reaffirmed its full year 2026 net sales and Adjusted EBITDA2 outlook, which includes net IEEPA tariff refunds of $6.8 million, and provided its outlook for the third quarter of 2026. Given the Company's solid profit performance in the first half of the year, the outlook provides the Company the flexibility to continue investing behind its growth initiatives in the second half, while also absorbing ongoing supply chain headwinds.
Assumptions in the outlook include that economic conditions, currency rates and the tax and regulatory landscape remain generally consistent, and that current or planned tariffs on imports into the U.S. from China and other countries as of September 2, 2026, will remain at current levels. Additionally, the outlook assumes no additional IEEPA tariff refunds are received for the balance of the year.
Full Year 2026 Outlook
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FY 2026 Outlook* |
Net Sales |
Flat to up 1.5% year over year |
Adjusted EBITDA2 |
$415 million to $430 million |
Net Interest Expense |
~$122 million |
Capital Expenditures |
~$140 million |
Depreciation & Amortization |
~$200 million |
Net Store Closures |
~15-20 |
2
Third Quarter 2026 Outlook
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Q3 2026 Outlook* |
Net Sales |
0.4% to 1.0% growth |
Adjusted EBITDA 2 |
$100 million to $103 million |
* Adjusted EBITDA is a non-GAAP financial measure and has not been reconciled to the most comparable GAAP outlook because it is not possible to do so without unreasonable efforts due to the uncertainty and potential variability of reconciling items, which are dependent on future events and often outside of management’s control and which could be significant. Because such items cannot be reasonably predicted with the level of precision required, we are unable to provide outlook for the comparable GAAP measures. Forward-looking estimates of Adjusted EBITDA are made in a manner consistent with the relevant definitions and assumptions noted herein and in our filings with the Securities and Exchange Commission.
Earnings Conference Call Webcast Information:
Management will host an earnings conference call on September 2, 2026 at approximately 4:15 PM Eastern Time to discuss the Company’s financial results. A live webcast of the conference call will be available on the Company's Investor Relations page at https://ir.petco.com/news-and-events/events-and-presentations. A replay of the webcast will be available through the same link approximately two hours after the conference call.
About Petco:
We're proud to be "where the pets go" to find everything they need to live their best lives for more than 60 years — from their favorite meals and toys, to trusted supplies and expert support from people who get it, because we live it. We believe in the universal truths of pet parenthood — the boundless boops, missing slippers, late night zoomies and everything in between. And we're here for it. Every tail wag, every vet visit, every step of the way. We nurture the pet-human bond in the aisles of more than 1,500 Petco stores across the U.S., Mexico and Chile. Customers experience our exclusive selection of pet care products, services, expertise and membership offerings in stores and online at petco.com, and on the Petco app. In 1999, we founded Petco Love. Together, we support thousands of local animal welfare groups nationwide and have helped find homes for over 7 million animals through in-store adoption events.
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 2026 outlook, operational reset of our business, our competitive positioning, profitability, cash generation through our economic model, expense leverage, operating margin expansion, cost action plans and associated cost-savings, our path to sustainable, profitable growth and our expectations regarding tariffs, IEEPA tariff refunds and associated impacts. 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,” “estimates,” “projects”, “forecasts” or the negative thereof or other variations thereon or comparable terminology. These statements are only predictions based on our current expectations and projections about future events and reflect our beliefs regarding such future events
3
and do not represent historical facts or statements of current condition. 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, prevailing interest rates and the impact of tariffs and tariff refunds; (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), government shutdowns, 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; (xxii) our ability to deliver sustainable, profitable growth and (xxiii) the other risks, uncertainties and other factors identified under “Risk Factors” in our most recent Annual Report on Form 10-K 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 cautions that the foregoing list of risks, uncertainties and other factors is not complete, and forward-looking statements speak only as of the date they are made. Petco undertakes no duty to update publicly any such forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by applicable law, regulation or other competent legal authority
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5
PETCO HEALTH AND WELLNESS COMPANY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited and subject to reclassification)
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13 Weeks Ended |
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26 Weeks Ended |
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August 1, |
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August 2, |
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August 1, |
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August 2, |
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Net sales: |
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Products |
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$ |
1,216,857 |
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$ |
1,225,605 |
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$ |
2,444,944 |
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$ |
2,467,496 |
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Services and other |
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272,363 |
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262,924 |
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541,008 |
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514,432 |
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Total net sales |
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1,489,220 |
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1,488,529 |
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2,985,952 |
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2,981,928 |
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Cost of sales: |
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Products |
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733,898 |
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747,143 |
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1,491,676 |
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1,513,428 |
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Services and other |
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164,175 |
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156,067 |
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328,704 |
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313,213 |
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Total cost of sales |
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898,073 |
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903,210 |
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1,820,380 |
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1,826,641 |
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Gross profit |
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591,147 |
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585,319 |
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1,165,572 |
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1,155,287 |
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Selling, general and administrative expenses |
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543,335 |
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542,297 |
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1,093,134 |
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1,095,906 |
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Operating income |
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47,812 |
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43,022 |
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72,438 |
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59,381 |
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Interest income |
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(2,493 |
) |
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(909 |
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(3,989 |
) |
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(2,268 |
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Interest expense |
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32,556 |
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33,297 |
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65,340 |
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66,791 |
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Loss on extinguishment and modification of debt |
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— |
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— |
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11,840 |
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— |
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Income (loss) before income taxes and income from |
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17,749 |
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10,634 |
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(753 |
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(5,142 |
) |
Income tax (benefit) expense |
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(15,710 |
) |
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746 |
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(13,511 |
) |
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1,241 |
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Income from equity method investees |
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(5,201 |
) |
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(4,084 |
) |
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(10,756 |
) |
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(8,694 |
) |
Net income attributable to Class A and B-1 common |
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$ |
38,660 |
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$ |
13,972 |
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$ |
23,514 |
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$ |
2,311 |
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Net income per Class A and B-1 common share: |
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Basic |
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$ |
0.14 |
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$ |
0.05 |
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$ |
0.08 |
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$ |
0.01 |
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Diluted |
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$ |
0.13 |
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$ |
0.05 |
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$ |
0.08 |
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$ |
0.01 |
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Weighted average shares used in computing net income per |
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Basic |
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285,629 |
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279,058 |
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284,657 |
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278,303 |
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Diluted |
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290,497 |
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285,741 |
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289,691 |
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284,350 |
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6
PETCO HEALTH AND WELLNESS COMPANY, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
(Unaudited and subject to reclassification)
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August 1, |
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January 31, |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
293,498 |
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$ |
256,736 |
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Receivables, less allowance for credit losses1 |
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38,386 |
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45,812 |
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Merchandise inventories, net |
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601,591 |
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590,210 |
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Prepaid expenses |
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54,433 |
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51,747 |
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Other current assets |
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65,190 |
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75,281 |
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Total current assets |
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1,053,098 |
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1,019,786 |
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Fixed assets |
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2,433,782 |
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2,378,208 |
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Less accumulated depreciation |
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(1,803,480 |
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(1,722,060 |
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Fixed assets, net |
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630,302 |
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656,148 |
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Operating lease right-of-use assets |
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1,268,518 |
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1,288,593 |
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Goodwill |
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980,064 |
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980,064 |
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Trade name |
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1,025,000 |
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1,025,000 |
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Other long-term assets |
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209,668 |
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|
203,834 |
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Total assets |
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$ |
5,166,650 |
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$ |
5,173,425 |
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LIABILITIES AND EQUITY |
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Current liabilities: |
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Accounts payable and book overdrafts |
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$ |
455,314 |
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$ |
450,552 |
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Accrued salaries and employee benefits |
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132,518 |
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154,148 |
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Accrued expenses and other liabilities |
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225,908 |
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204,751 |
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Current portion of operating lease liabilities |
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340,643 |
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320,082 |
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Current portion of long-term debt and other lease liabilities |
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12,061 |
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4,608 |
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Total current liabilities |
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1,166,444 |
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1,134,141 |
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Senior secured credit facilities, net, excluding current portion |
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872,798 |
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1,488,527 |
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Senior notes, net |
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590,567 |
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- |
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Operating lease liabilities, excluding current portion |
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1,005,146 |
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1,047,185 |
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Deferred taxes, net |
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246,861 |
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234,911 |
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Other long-term liabilities |
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77,907 |
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104,407 |
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Total liabilities |
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3,959,723 |
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4,009,171 |
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Commitments and contingencies |
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Stockholders' equity: |
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Class A common stock2 |
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248 |
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244 |
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Class B-1 common stock3 |
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38 |
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38 |
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Class B-2 common stock4 |
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— |
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— |
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Preferred stock5 |
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— |
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— |
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Additional paid-in-capital |
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2,328,170 |
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2,312,354 |
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Accumulated deficit |
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(1,116,479 |
) |
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(1,139,993 |
) |
Accumulated other comprehensive loss |
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(5,050 |
) |
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(8,389 |
) |
Total stockholders’ equity |
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1,206,927 |
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1,164,254 |
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Total liabilities and stockholders’ equity |
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$ |
5,166,650 |
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$ |
5,173,425 |
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7
PETCO HEALTH AND WELLNESS COMPANY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited and subject to reclassification)
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26 Weeks Ended |
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August 1, |
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August 2, |
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Cash flows from operating activities: |
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Net income |
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$ |
23,514 |
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$ |
2,311 |
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Adjustments to reconcile net income to net cash provided by |
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Depreciation and amortization |
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99,440 |
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|
99,171 |
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Amortization of debt discounts and issuance costs |
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2,689 |
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|
2,499 |
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Provision for deferred taxes |
|
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(1,439 |
) |
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|
1,113 |
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Equity-based compensation |
|
|
18,051 |
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|
18,209 |
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Loss on extinguishment and modification of debt |
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|
11,840 |
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|
|
— |
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Income from equity method investees |
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(10,756 |
) |
|
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(8,694 |
) |
Amounts reclassified out of accumulated other comprehensive loss |
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(24 |
) |
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|
(413 |
) |
Non-cash operating lease costs |
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|
206,243 |
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|
|
205,005 |
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Changes in assets and liabilities: |
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Receivables |
|
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7,427 |
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|
5,783 |
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Merchandise inventories |
|
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(11,381 |
) |
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|
44,823 |
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Prepaid expenses and other assets |
|
|
3,696 |
|
|
|
(9,487 |
) |
Accounts payable and book overdrafts |
|
|
5,084 |
|
|
|
(69,691 |
) |
Accrued salaries and employee benefits |
|
|
(21,628 |
) |
|
|
(26,729 |
) |
Accrued expenses and other liabilities |
|
|
20,722 |
|
|
|
14,508 |
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Operating lease liabilities |
|
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(209,279 |
) |
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|
(206,414 |
) |
Other long-term liabilities |
|
|
(13,615 |
) |
|
|
(1,556 |
) |
Net cash provided by operating activities |
|
|
130,584 |
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|
70,438 |
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Cash flows from investing activities: |
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Cash paid for fixed assets |
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|
(69,788 |
) |
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|
(60,516 |
) |
Insurance recoveries |
|
|
422 |
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|
|
— |
|
Proceeds from sale of assets |
|
|
— |
|
|
|
2,425 |
|
Cash received from partial surrender of officers' life insurance |
|
|
74 |
|
|
|
— |
|
Net cash used in investing activities |
|
|
(69,292 |
) |
|
|
(58,091 |
) |
Cash flows from financing activities: |
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|
|
|
|
|
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Borrowings under long-term debt agreements |
|
|
1,500,000 |
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|
|
— |
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Repayments of long-term debt |
|
|
(1,502,250 |
) |
|
|
— |
|
Debt refinancing costs and original issue discount |
|
|
(28,442 |
) |
|
|
— |
|
Payments for finance lease liabilities |
|
|
(3,172 |
) |
|
|
(3,252 |
) |
Proceeds from employee stock purchase plan and stock option exercises |
|
|
1,923 |
|
|
|
1,998 |
|
Tax withholdings on stock-based awards |
|
|
(4,261 |
) |
|
|
(3,026 |
) |
Net cash used in financing activities |
|
|
(36,202 |
) |
|
|
(4,280 |
) |
|
|
|
|
|
|
|
||
Net increase in cash, cash equivalents and restricted cash |
|
|
25,090 |
|
|
|
8,067 |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
|
269,412 |
|
|
|
181,665 |
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
294,502 |
|
|
$ |
189,732 |
|
8
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.
Adjusted EBITDA
Adjusted EBITDA is considered a non-GAAP financial measure under the Securities and Exchange Commission’s (SEC) rules because it excludes certain amounts included in net income calculated in accordance with GAAP. Management believes that Adjusted EBITDA is a meaningful measure to share with investors because it facilitates comparison of the current period performance with that of the comparable prior period. In addition, Adjusted EBITDA affords investors a view of what management considers to be Petco’s core operating performance as well as the ability to make a more informed assessment of such operating performance as compared with that of the prior period. Please see the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2026 filed with the SEC on March 13, 2026 for additional information on Adjusted EBITDA.
The table below reflects the calculation of Adjusted EBITDA for the thirteen and twenty-six weeks ended August 1, 2026 compared to the thirteen and twenty-six weeks ended August 2, 2025.
(dollars in thousands) |
|
13 Weeks Ended |
|
|
26 Weeks Ended |
|
||||||||||
Reconciliation of Net Income Attributable to Class A and B-1 Common Stockholders to Adjusted EBITDA |
|
August 1, |
|
|
August 2, |
|
|
August 1, |
|
|
August 2, |
|
||||
Net income attributable to Class A and B-1 common |
|
$ |
38,660 |
|
|
$ |
13,972 |
|
|
$ |
23,514 |
|
|
$ |
2,311 |
|
Add (deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense, net |
|
|
30,063 |
|
|
|
32,388 |
|
|
|
61,351 |
|
|
|
64,523 |
|
Income tax (benefit) expense |
|
|
(15,710 |
) |
|
|
746 |
|
|
|
(13,511 |
) |
|
|
1,241 |
|
Depreciation and amortization |
|
|
50,399 |
|
|
|
49,360 |
|
|
|
99,440 |
|
|
|
99,171 |
|
Income from equity method investees |
|
|
(5,201 |
) |
|
|
(4,084 |
) |
|
|
(10,756 |
) |
|
|
(8,694 |
) |
Loss on extinguishment and modification of debt |
|
|
— |
|
|
|
— |
|
|
|
11,840 |
|
|
|
— |
|
Equity-based compensation |
|
|
8,600 |
|
|
|
8,789 |
|
|
|
18,051 |
|
|
|
18,209 |
|
Mexico joint venture EBITDA (1) |
|
|
13,139 |
|
|
|
10,360 |
|
|
|
26,055 |
|
|
|
20,558 |
|
Other costs (2) |
|
|
2,269 |
|
|
|
2,329 |
|
|
|
3,566 |
|
|
|
5,990 |
|
Adjusted EBITDA |
|
$ |
122,219 |
|
|
$ |
113,860 |
|
|
$ |
219,550 |
|
|
$ |
203,309 |
|
Net sales |
|
$ |
1,489,220 |
|
|
$ |
1,488,529 |
|
|
$ |
2,985,952 |
|
|
$ |
2,981,928 |
|
Net margin (3) |
|
|
2.6 |
% |
|
|
0.9 |
% |
|
|
0.8 |
% |
|
|
0.1 |
% |
Adjusted EBITDA Margin |
|
|
8.2 |
% |
|
|
7.6 |
% |
|
|
7.4 |
% |
|
|
6.8 |
% |
9
|
|
13 Weeks Ended |
|
|
26 Weeks Ended |
|
||||||||||
(in thousands) |
|
August 1, |
|
|
August 2, |
|
|
August 1, |
|
|
August 2, |
|
||||
Net income |
|
$ |
10,402 |
|
|
$ |
8,167 |
|
|
$ |
21,506 |
|
|
$ |
17,387 |
|
Depreciation |
|
|
8,838 |
|
|
|
6,793 |
|
|
|
17,144 |
|
|
|
13,390 |
|
Income tax expense |
|
|
5,216 |
|
|
|
3,935 |
|
|
|
10,410 |
|
|
|
8,101 |
|
Foreign currency loss |
|
|
326 |
|
|
|
696 |
|
|
|
470 |
|
|
|
404 |
|
Interest expense, net |
|
|
1,496 |
|
|
|
1,129 |
|
|
|
2,579 |
|
|
|
1,833 |
|
EBITDA |
|
$ |
26,278 |
|
|
$ |
20,720 |
|
|
$ |
52,109 |
|
|
$ |
41,115 |
|
50% of EBITDA |
|
$ |
13,139 |
|
|
$ |
10,360 |
|
|
$ |
26,055 |
|
|
$ |
20,558 |
|
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 1, 2026 compared to the thirteen and twenty-six weeks ended August 2, 2025.
|
|
13 Weeks Ended |
|
|
26 Weeks Ended |
|
||||||||||
(in thousands) |
|
August 1, |
|
|
August 2, |
|
|
August 1, |
|
|
August 2, |
|
||||
Net cash provided by operating activities |
|
$ |
161,553 |
|
|
$ |
85,892 |
|
|
$ |
130,584 |
|
|
$ |
70,438 |
|
Cash paid for fixed assets |
|
|
(31,635 |
) |
|
|
(32,104 |
) |
|
|
(69,788 |
) |
|
|
(60,516 |
) |
Free Cash Flow |
|
$ |
129,918 |
|
|
$ |
53,788 |
|
|
$ |
60,796 |
|
|
$ |
9,922 |
|
Net Debt
The table below reflects the calculation for net debt as of August 1, 2026 compared to January 31, 2026 and August 2, 2025.
(dollars in thousands) |
|
August 1, |
|
|
January 31, |
|
|
August 2, |
|
|||
Total debt: |
|
|
|
|
|
|
|
|
|
|||
Senior secured credit facilities, net, including current portion |
|
$ |
881,798 |
|
|
$ |
1,488,527 |
|
|
$ |
1,580,688 |
|
Senior notes, net |
|
|
590,567 |
|
|
|
— |
|
|
|
— |
|
Finance leases, including current portion |
|
|
7,542 |
|
|
|
9,683 |
|
|
|
12,012 |
|
Total debt |
|
|
1,479,907 |
|
|
|
1,498,210 |
|
|
|
1,592,700 |
|
Less: cash and cash equivalents |
|
|
(293,498 |
) |
|
|
(256,736 |
) |
|
|
(188,748 |
) |
Net Debt |
|
$ |
1,186,409 |
|
|
$ |
1,241,474 |
|
|
$ |
1,403,952 |
|
10