Companies /Consumer Cyclical

Petco Health and Wellness Co Inc - Class A

NASDAQ: WOOF Specialty Retail
$2.63
▲ $0.05 (+1.94%) today
Markets closed · 7:12am ET

Q1 2026 Earnings

Reported Jun 5, 2025, 4:10pm ET · SEC source
$-0.04
Miss −179.72%
EPS · est. $-0.01
$1.5B
Miss −0.62%
Revenue · est. $1.5B
+6.2%
Beating market
WOOF vs S&P since report
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
−18%−9%0Jun 5Jun 6report 4:10pm ETearnings+1.1%−21.3%
−18%−9%0Jun 5Jun 6earnings+1.1%−21.3%
WOOF −21.3%S&P 500 +1.1%
−18%−9%0Jun 5Jun 6report 4:10pm ETearnings+1.2%−21.9%
−18%−9%0Jun 5Jun 6earnings+1.2%−21.9%
WOOF −21.9%NASDAQ +1.2%
−20%0Jun 4Jun 13report 4:10pm ETearnings+0.8%−22.7%
−20%0Jun 4Jun 13earnings+0.8%−22.7%
WOOF −22.7%S&P 500 +0.8%
−20%0Jun 4Jun 13report 4:10pm ETearnings+0.8%−22.7%
−20%0Jun 4Jun 13earnings+0.8%−22.7%
WOOF −22.7%NASDAQ +0.8%
−23.34%
Day of report
−4.86%
Next session
−10.99%
One week
+10.63%
30 days

S&P 500 over the same 30 days: +4.45%.

Did WOOF Beat Earnings? Q1 2026 Results

Petco Health and Wellness posted a mixed but broadly encouraging first quarter for fiscal 2025, with results coming in ahead of the company's own guidance even as Wall Street had hoped for more, reporting an EPS of -$0.04 and net sales of $1.49 billion, a 2.3% year-over-year decline that reflected ongoing softness in product revenue. The more compelling story was margin discipline: gross profit margin expanded roughly 30 basis points to 38.2%, SG&A expenses fell 7% to $553.61 million, and operating income swung to a gain of $16.36 million from a $16.78 million loss a year earlier, with Adjusted EBITDA climbing to $89.45 million from $75.64 million. Services revenue, which includes veterinary, grooming, and training, rose 1% to $251.51 million, underscoring how Petco's shift toward recurring health-and-wellness offerings is cushioning the top-line pressure that's affecting <a href="https://247wallst.com/investing/2025/06/04/bark-inc-bark-earnings-live-turnaround-in-sight-but-stock-under-scrutiny/">broader pet industry players</a> as well. Looking ahead, the company reaffirmed full-year guidance for Adjusted EBITDA of $375 million to $390 million, with Q2 Adjusted EBITDA expected between $92 million and $94 million, assuming current tariff levels hold through year-end.

Key Takeaways
  • Gross profit margin expansion of approximately 30 basis points to 38.2%
  • SG&A expenses reduced 7% year over year
  • Operating income improved $33.1 million year over year
  • Adjusted EBITDA margin expanded to 6.0% from 4.9%
  • Services and other revenue grew 1% year over year
  • Execution of operational reset strategy to strengthen retail fundamentals

“We are pleased to deliver first quarter earnings results ahead of our guidance and to reaffirm our outlook for fiscal 2025 which now incorporates the impact of tariffs. This performance is a testament to the execution of our nearly 30,000 team members and the resilience of the category in which we operate.”

Petco Health & Wellness CEO, on the earnings call

Forward Guidance & Outlook

Petco reaffirmed its full-year fiscal 2025 outlook: net sales expected down low single digits year over year, Adjusted EBITDA of $375 million to $390 million, net interest expense of approximately $130 million, capital expenditures of $125 million to $130 million, and depreciation & amortization of approximately $200 million. For Q2 2025, the company guided to net sales down low single digits year over year and Adjusted EBITDA of $92 million to $94 million. Guidance assumes that current tariffs on imports into the U.S. from China and other countries as of June 5, 2025 stay at current levels and do not increase for the remainder of the year.

WOOF YoY Financials

Revenue$1.5B
Gross Profit$570.0M
Operating Income$16.4M
Net Income$-11,661,000

WOOF Revenue by Segment

Products$1.2B−3.0%
Services and other$251.5M+1.0%
Services and Other

Figures from SEC filings and company reports. Not investment advice.