Petco Q1 2026 earnings miss: comparable sales turn positive

Petco reported first-quarter results Tuesday that showed a instrumentality to affirmative comparable income maturation but a wider nett nonaccomplishment than the aforesaid play a twelvemonth ago, sending Petco banal little aft the report.

The institution posted nett income of $1.5 cardinal for the 4th ended May 2, up 0.2% from a twelvemonth earlier, with comparable income rising 0.7%. Petco recorded a nett nonaccomplishment of $15.1 million, compared with a nett nonaccomplishment of $11.7 cardinal successful the archetypal 4th of 2025.

On an adjusted basis, the institution earned $0.01 per share, topping the Zacks statement estimate, which had called for a nonaccomplishment of $0.02 per share, according to Yahoo Finance. The quarter's $1.5 cardinal successful gross came successful 0.66% supra the Zacks statement estimate. However, Investing.com reported the institution missed net estimates by $0.06.

At the gross level, nett reached $574.4 cardinal arsenic borderline widened by 21 ground points to 38.4%. A 50.5% leap successful operating income brought that fig to $24.6 million. Adjusted EBITDA of $97.3 cardinal represented an 8.8% summation from $89.4 cardinal successful the prior-year period. At quarter's end, the institution operated 1,378 U.S. locations, a nett simplification of 4 stores during the period.

CEO Joel Anderson attributed the results to the company's "Reach for the Sky" strategy, pointing to betterment successful the consumables concern and continued spot successful services. "Our beardown first-quarter results, highlighted by affirmative comparable income and profitability that exceeded our outlook, supply clear, aboriginal validation that our Phase 3 'Reach for the Sky' strategy is working," Anderson said successful a statement.

Store closures accounted for the divergence betwixt comparable and full income figures, CFO Sabrina Simmons explained, with 16 locations closed connected a nett ground successful fiscal 2025 and an further 4 unopen successful the astir caller quarter. Free currency travel was an outflow of $69.1 million, compared with an outflow of $43.9 cardinal a twelvemonth earlier. Total indebtedness fell to $1.482 cardinal from $1.593 cardinal successful the year-ago period.

Petco reaffirmed its full-year 2026 outlook, projecting nett income level to up 1.5% twelvemonth implicit twelvemonth and adjusted EBITDA of $415 cardinal to $430 million. For the 2nd quarter, the institution projected nett income maturation of astir 0.3% twelvemonth implicit twelvemonth and adjusted EBITDA of $110 cardinal to $112 million. The institution said it plans to adjacent 15 to 20 nett stores for the afloat year.