Petco 2Q Profit Rises as Turnaround Gains Traction

By Kelly Cloonan

Petco Health and Wellness's second-quarter profit more than doubled as the company sees its turnaround plan gaining traction.

The stock gained 9.1%, to $2.87, in late trading on Wednesday.

The pet-supplies retailer posted a second-quarter profit of $38.7 million, or 13 cents a share, compared with a profit of $14 million, or 5 cents a share, a year earlier.

The company said it received substantially all refunds from tariffs it paid this year and last year in the quarter, boosting its bottom line by $6.8 million.

Revenue was roughly flat at $1.49 billion, in line with analyst estimates, according to FactSet. Same-store sales ticked up 0.6%, compared with analysts' projection of 0.7% growth.

Petco said sales were hurt by initially stronger-than-expected points redemption from the relaunch of its membership program. The company said sales before the relaunch were trending ahead of its outlook for the quarter, which guided for sales up about 0.3% year over year.

Chief Executive Joel Anderson pointed to growth in consumables, a metric he said shows the company's strategy is gaining traction.

"Looking ahead to the second half, we are positioned to benefit from several growth drivers," he added.

The company backed its guidance for the year, forecasting revenue growth in a range of flat to up 1.5% and adjusted earnings before interest, taxes, depreciation and amortization of between $415 million and $430 million.

The company said the outlook gives it the flexibility to continue investing in its growth initiatives in the second half of the year while absorbing ongoing supply chain headwinds.

For the current third quarter, the company expects revenue to grow 0.4% to 1%. Analysts are expecting revenue of $1.48 billion, or up around 1.1%.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

September 02, 2026 17:04 ET (21:04 GMT)