Petco Names Ex-Best Buy Executive Mike Mohan as Interim CEO

Petco CEO, Chairman and board member Ron Coughlin stepped down from those roles Wednesday (March 13) and was succeeded by Interim CEO R. Michael (Mike) Mohan.

Coughlin will support the leadership transition as an advisor to the board, while the board has tapped a global executive search firm to help it find a permanent CEO, the pet care retailer said in a Wednesday press release.

“On behalf of the board, we are deeply grateful for Ron’s many contributions to Petco over the past five years,” Cameron Breitner, a member of the Petco board of directors, said in the release. “Ron was instrumental in establishing and growing many aspects of our 360-degree pet ecosystem, significantly increasing Petco’s revenues, and leading the company through its IPO while always putting our people first.”

The company’s interim CEO, Mohan, has served on the Petco board since March 2021 and as lead independent director since July 2021, according to the release. He is also a former president and chief operating officer of Best Buy, where he was responsible for global operations.

“Mike’s highly successful track record across multiple segments of the retail industry, deep knowledge of Petco and strong operational skills make him the ideal executive to ensure a seamless transition as Petco moves forward,” Breitner said in the release.

With Mohan’s appointment as interim CEO, he has stepped down from the board’s audit committee and from the lead independent director role, per the release.

With Coughlin’s departure from the board, the size of Petco’s board has been reduced from 11 to 10, the release said.

This announcement comes on the same day that Petco reported its fourth-quarter and full-year 2023 earnings, saying that its net revenue increased 6.1% year-over-year in the fourth quarter while its comparable sales declined 0.9%.

CNBC reported Wednesday that even while Petco has reported consistent sales growth and results that were in line with analysts’ expectations, Wall Street has grown impatient with the company’s moves, and the company’s market cap has dipped over the past year.

During a November earnings call, Coughlin said Petco was navigating a challenging consumer environment and working to improve the performance of its business.

In the Wednesday press release announcing the CEO transition, Mohan said: “I have a deep belief in our purpose and I look forward to working with the leadership team and our partners to continue strengthening our business, driving profitability through operational discipline and execution that will improve growth, drive margin and generate cash to create shareholder value.”