Petco’s turnround accelerates as second straight quarter of positive comparable sales boosts optimism

Petco Health and Wellness reports a second consecutive quarter of positive comparable sales, signalling further traction in its turnaround plan despite challenges in the dog category and ongoing supply chain pressures.

Petco Health and Wellness reported a second straight quarter of positive comparable sales as its turnaround plan showed further traction, even as the relaunch of its loyalty scheme weighed on services revenue.

The US pet retailer said comparable sales rose 0.6% in the second quarter and adjusted EBITDA reached $122 million. Excluding a one-off $6.8 million tariff refund, EBITDA was $115 million, still ahead of management’s expectations. Revenue was about $1.5 billion, according to earnings materials cited by market reports.

Chief executive Joel Anderson said the company saw a slight improvement in its customer base and described scope to drive more spending from existing shoppers across stores, digital channels and services. Veterinary care remained a bright spot, with double-digit growth in pet visits and more doctor days added to meet demand.

Petco’s new store format, tested in seven locations, also showed promising gains in new and reactivated customers, transaction volumes and basket sizes. The group prepaid a further $75 million of debt, taking nine-month reductions to $170 million.

Management said the dog category remained soft and supply chain pressures would persist, while third-quarter sales growth is expected to remain modest at 0.4% to 1%.