Petco reported second-quarter 2026 net sales of approximately $1.5 billion, roughly flat year over year, while comparable sales increased 0.6%, marking the company’s second consecutive quarter of positive comparable-sales growth.
Gross profit increased to $591.1 million and gross margin expanded 37 basis points to 39.7%. Operating income increased 11.1% to $47.8 million, while net income rose to $38.7 million from $14 million. Adjusted EBITDA increased to $122.2 million from $113.9 million. The quarter included a $6.8 million net benefit related to tariff refunds.
Petco ended the quarter with $293.5 million of cash and $1.48 billion of total debt. Following quarter-end, it voluntarily prepaid another $75 million of debt, bringing total prepayments to $170 million over the past nine months as it works toward a 2x leverage target.
Petco reaffirmed its fiscal 2026 outlook for net sales ranging from flat to 1.5% growth and adjusted EBITDA of $415 million to $430 million.
KEY QUOTES:
“We delivered stronger than expected profitability in the quarter while achieving our second consecutive quarter of positive comps. We were pleased to see growth in consumables, which highlights that our ‘Reach for the Sky’ strategy is gaining traction. Looking ahead to the second half, we are positioned to benefit from several growth drivers and are pleased to reaffirm our full-year sales and profitability outlook. We remain confident in our ability to generate sustainable, long-term growth.”
Joel Anderson, Chief Executive Officer of Petco
“We are pleased to deliver another quarter of positive comps and deliver on our bottom-line commitments as we execute on our economic model. Subsequent to the second quarter, we voluntarily prepaid an additional $75 million in debt, bringing our total prepayments to $170 million in the past nine months. Looking ahead, we are pleased to reaffirm our full-year sales and Adjusted EBITDA outlook, reflecting confidence in our second half strategic initiatives while remaining thoughtful about balancing the dynamic backdrop while investing behind our growth priorities.”
Sabrina Simmons, Chief Financial Officer of Petco
