Petco Reports Slight Increase in Net Sales to $1.50 Billion, Faces Net Loss of $15.1 Million

Petco Health and Wellness Company, Inc. reported a slight increase in net sales for the thirteen weeks ended May 2, 2026, reaching $1.50 billion, up from $1.49 billion in the same period last year. This represents a growth of 0.2%, driven primarily by a 6.8% increase in services and other revenue, which totaled $268.6 million, compared to $251.5 million in the prior year. However, product sales decreased slightly, with consumables and supplies generating $746.8 million and $481.3 million, respectively. The company's gross profit margin improved to 38.4%, up from 38.2% year-over-year, reflecting effective management of inventory and pricing strategies.

Despite the increase in sales, Petco reported a net loss attributable to Class A and B-1 common stockholders of $15.1 million, compared to a loss of $11.7 million in the previous year. The loss was impacted by an $11.8 million charge related to the extinguishment and modification of debt during a refinancing transaction. Operating income improved to $24.6 million from $16.4 million, indicating better operational efficiency. The company’s Adjusted EBITDA also rose to $97.3 million from $89.4 million, highlighting a positive trend in operational performance.

In terms of strategic developments, Petco has been focusing on enhancing its digital capabilities and customer engagement through its e-commerce platform and mobile app. The company operates over 1,500 stores across the U.S., Mexico, and Chile, and continues to invest in customer acquisition and retention initiatives. The total number of pet care centers in the U.S. decreased to 1,378 from 1,393, which may have contributed to the decline in product sales. The company is also actively involved in sustainability initiatives and partnerships with local animal welfare organizations.

Operationally, Petco's cash flow from operating activities showed a net outflow of $31.0 million, compared to $15.5 million in the prior year, primarily due to increased inventory purchases and timing of payments. The company’s liquidity position remains strong, with $654.4 million available, including $166.8 million in cash and $487.6 million in borrowing capacity under its asset-based revolving credit facility. Looking ahead, Petco anticipates continued challenges from macroeconomic factors such as inflation and supply chain constraints but remains committed to improving profitability and driving sustainable growth through strategic investments and operational efficiencies.