Petco Health & Wellness has recently released its latest 10-Q report. Petco Health and Wellness Company, Inc. operates as a pet specialty retailer with stores in the United States, Mexico, and Chile, along with a business presence in Puerto Rico through its digital channels and services. The company sells pet care supplies and companion animals and provides veterinary care, grooming, and training, with products also available through petco.com and its mobile app.
In Item 2, Management’s Discussion and Analysis, Petco said it recorded $1.50 billion in net sales for the thirteen weeks ended May 2, 2026, up 0.2% from $1.49 billion a year earlier. Comparable sales increased 0.7%, reversing a 1.3% decline in the prior-year period, while adjusted EBITDA rose to $97.3 million from $89.4 million. Operating income increased to $24.6 million from $16.4 million, even as the company reported a net loss attributable to Class A and B-1 common stockholders of $15.1 million, wider than the $11.7 million loss a year earlier.
Petco’s sales mix showed $746.8 million in consumables, essentially flat from $748.1 million a year earlier, and $481.3 million in supplies and companion animals, down 2.5% from $493.8 million. Services and other revenue rose 6.8% to $268.6 million from $251.5 million, and the company said the increase was driven by customer acquisition and retention efforts and optimization of its veterinary footprint. Gross profit increased to $574.4 million from $570.0 million, lifting gross margin to 38.4% from 38.2%.
Selling, general and administrative expenses fell to $549.8 million from $553.6 million, reducing SG&A to 36.7% of net sales from 37.1%. Petco said the decline was mainly due to lower payroll and consulting costs, partly offset by higher advertising expense. Interest expense declined to $32.8 million from $33.5 million, reflecting a lower average principal balance of debt, though this was partly offset by higher interest rates.
The company recorded an $11.8 million loss on extinguishment and modification of debt tied to its February 2, 2026 refinancing transaction. Loss before income taxes and income from equity method investees was $18.5 million, compared with a $15.8 million loss in the prior-year quarter. Income tax expense rose to $2.2 million from $0.5 million, and income from equity method investees increased to $5.6 million from $4.6 million.
At quarter-end, Petco operated 1,378 U.S. pet care centers, down from 1,393 a year earlier. The company also said it had applied for a refund of tariffs paid after the U.S. Supreme Court invalidated certain tariffs previously imposed under IEEPA on February 20, 2026. The market has reacted to these announcements by moving the company's shares -1.06% to a price of $2.80. For the full picture, make sure to review Petco Health & Wellness's 10-Q report.
