Petco reports 3.1% decrease in Q3 net sales

By Tamara Parker • Wednesday, November 26 06:04 • Permanent Link

Petco (NASDAQ: WOOF) has reported its financial results for the third quarter of 2025, showing a 3.1% year-over-year decrease in net sales to $1.5 billion, in line with the company's third-quarter outlook. Comparable sales also decreased by 2.2% year over year.

The company's gross profit margin expanded by approximately 75 basis points to 38.9% as a percentage of net sales, and operating income improved by $25.2 million to $29.2 million. GAAP net income improved by $26.0 million to $9.3 million, while adjusted EBITDA increased by $17.3 million to $98.6 million.

Looking ahead, Petco has tightened its full-year net sales outlook and upwardly revised its full-year 2025 earnings guidance. It increased the midpoint of its expected adjusted EBITDA range by $6 million. The company also provided its outlook for the fourth quarter of 2025, expecting net sales to decrease in the low single digits year over year and forecasting adjusted EBITDA in the range of $93 million to $95 million.

For the full year 2025, the company now expects net sales to be down 2.5% * 2.8%, with adjusted EBITDA in the range of $395 million to $397 million. The outlook also includes net interest expense of approximately $125 million, capital expenditures of $125 million * $130 million, depreciation & amortization of approximately $200 million, and around 20 net store closures.

Petco's CEO, Joel Anderson, stated, "Once again, we delivered on Petco's profitability goals as we continue to execute on our multi-phased transformation. Rebuilding the base of our economic model has been a priority in 2025. This strengthened base sets the foundation for a return to growth during fiscal 2026."

The company will host an earnings conference call on November 25, 2025, to discuss its financial results.

Petco operates more than 1,500 stores across the U.S., Mexico, and Puerto Rico, offering a wide selection of pet care products, services, expertise, and membership offerings in stores, online at petco.com, and on the Petco app. In 1999, the company founded Petco Love, which supports thousands of local animal welfare groups nationwide and has helped find homes for over 7 million animals through in-store adoption events. Today the company's shares have moved 2.33% to a price of $2.855. If you want to know more, read the company's complete 8-K report here.

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