Petco Reports Decrease in Net Sales to $1.464 Billion, Achieves Improved Operating Income

Petco Health and Wellness Company, Inc. reported its financial results for the thirteen weeks ended November 1, 2025, revealing a decrease in net sales to $1.464 billion, down 3.1% from $1.511 billion in the same period last year. The decline in revenue was attributed to lower transaction volumes and a reduced pet care center count, as well as a strategic focus on profitability and margin management. Despite the drop in sales, the company achieved an operating income of $29.2 million, a significant improvement from the $4.0 million reported in the prior year. Net income attributable to Class A and B-1 common stockholders was $9.3 million, compared to a net loss of $16.7 million in the same quarter last year.

In terms of operational metrics, Petco's comparable sales decreased by 2.2% during the quarter, while the total number of pet care centers in the U.S. and Puerto Rico stood at 1,389, a reduction from 1,413 in the previous year. The company reported an increase in Adjusted EBITDA to $98.6 million, up from $81.2 million in the prior year, reflecting improved operational efficiency. The gross profit margin also improved to 38.9%, compared to 38.1% in the same quarter last year, driven by better inventory management and service utilization.

Petco's financial position showed a slight increase in total assets, which rose to $5.205 billion from $5.194 billion at the end of the previous fiscal period. The company reported cash and cash equivalents of $237.4 million, up from $165.8 million, and maintained a strong liquidity position with $732.9 million available, including $495.5 million from its asset-based revolving credit facility. The company’s total liabilities decreased to $4.048 billion from $4.081 billion, primarily due to lower accounts payable and accrued expenses.

Strategically, Petco has continued to focus on enhancing its service offerings, which have shown growth, particularly in veterinary services. The company has also been optimizing its existing veterinary hospital footprint to drive customer acquisition and retention. Looking ahead, Petco anticipates that macroeconomic factors, including inflation and interest rates, will continue to impact its operations, but it remains committed to executing its transformation initiatives and improving profitability. The company has not provided specific forward-looking revenue guidance but emphasizes its focus on maintaining a disciplined approach to cost management and pricing strategies.