Petco lifts full-year guidance amid mixed results
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by Diana Dominguez
The US pet retailer reports stronger margins and higher income in Q2. GlobalPETS has the details.
Petco reported a 2.3% year-over-year (YoY) decline in net sales to $1.5 billion (€1.3B) in the second quarter of fiscal year 2025 ending 2 August 2025. These results match the previous quarter.
Comparable sales decreased 1.4% from the same period last year. Gross profit edged up 0.9% to $858 million (€785M) from $850 million (€778M).
Operating income rose sharply to $43 million (€39M) from $4.5 million (€4.1M) in Q1.
“For the second quarter, we once again delivered against our commitments, enabling us to raise our earnings outlook for the full year,” says the company’s CEO, Joel Anderson.
H1 overview
For the first half of FY2025, net sales slipped 0.6% to $2.98 billion (€2.7B) from $3 billion (€2.8B) a year earlier.
Operating income from February to August 2025 reached $59.4 million (€54.4M), compared with a $14.3 million (€13.1M) loss during the same period last year.
“The first half of this year established a solid foundation for our transformation as we continued to strengthen our economic model and improve retail operating fundamentals,” adds Anderson.
Outlook
Despite the modest sales decline, Petco raised its full-year earnings outlook.
For FY2025, the company forecasts net sales will fall in the low single digits year-over-year, with capital expenditures of $125 million (€114.4M) to $130 million (€119M). Adjusted EBITDA is projected at $385 million (€352.4M) to $395 million (€361.3M).
For the third quarter, Petco expects another low single-digit sales decline and adjusted EBITDA of $92 million (€84.2M) to $94 million (€86M).
“As we look ahead to the remainder of this year, we will continue to execute on our objectives while also leaning into select targeted investments that we believe will help set the stage for a return to sustainable profitable growth,” concludes Anderson.
Fonte: globalpetindustry.com
