Petco Profits Double as Turnaround Strategy Takes Hold

The jump in net income, rising from $14 million in the same period last year, was partially bolstered by a $6.8 million windfall from recovered tariffs. While top-line revenue remained flat at $1.49 billion, Chief Executive Joel Anderson highlighted a notable uptick in consumable sales as evidence that the core business strategy is gaining traction. The company’s performance was slightly complicated by the relaunch of its loyalty membership program, where higher-than-expected points redemption temporarily dampened sales figures.

Looking toward the remainder of the year, Petco reaffirmed its financial guidance, projecting revenue growth between flat and 1.5%. Management expects adjusted EBITDA to land in the $415 million to $430 million range, providing sufficient capital to fund ongoing growth initiatives while navigating persistent supply chain pressures. For the upcoming third quarter, the company anticipates revenue growth of up to 1%, keeping pace with its broader annual targets.