Petco Health and Wellness recently released its Form 10-Q for the quarter ended Aug. 1, 2026. The company operates a pet specialty retail business in the U.S., Mexico, Puerto Rico and Chile, selling pet care supplies and companion animals and providing veterinary care, grooming and training services. Its business also runs through petco.com and the Petco app, and it sells products under brands including WholeHearted, Reddy, So Phresh and Well & Good.
In Item 2, Management’s Discussion and Analysis, Petco said its results for the 13 weeks ended Aug. 1, 2026 included net sales of $1.49 billion, up from $1.49 billion a year earlier, and comparable sales growth of 0.6% versus a 1.4% decline in the prior-year period. Operating income rose to $47.8 million from $43.0 million, while net income attributable to Class A and B-1 common stockholders increased to $38.7 million from $14.0 million.
For the 26-week period, net sales were $2.99 billion, compared with $2.98 billion a year earlier, and comparable sales were up 0.6% versus down 1.3%. Operating income increased to $72.4 million from $59.4 million, and net income attributable to Class A and B-1 common stockholders improved to $23.5 million from $2.3 million.
Gross profit for the quarter was $591.1 million, up from $585.3 million, and gross margin expanded to 39.7% from 39.3%. For the first half, gross profit was $1.17 billion versus $1.16 billion, with gross margin at 39.0% compared with 38.7%.
Petco said the quarterly gross margin improvement was driven mainly by a $6.8 million net benefit from tariff refunds, partly offset by investment in new assortments and higher fuel and tariff costs. Selling, general and administrative expenses were $543.3 million in the quarter, versus $542.3 million a year earlier, and $1.09 billion for the first half, down from $1.10 billion.
Services and other revenue rose to $272.4 million in the quarter from $262.9 million, a 3.6% increase, and to $541.0 million for the half-year from $514.4 million, up 5.2%. Consumables sales were $731.3 million in the quarter, up 0.2%, while supplies and companion animals fell 2.0% to $485.6 million. On a half-year basis, consumables were essentially flat at $1.48 billion, while supplies and companion animals declined 2.3% to $966.8 million.
Interest expense was $32.6 million in the quarter, down from $33.3 million, and $65.3 million for the half-year, down from $66.8 million. Petco recorded an $11.8 million loss on extinguishment and modification of debt in the 26-week period tied to its Feb. 2, 2026 refinancing.
Adjusted EBITDA increased to $122.2 million from $113.9 million in the quarter and to $219.6 million from $203.3 million for the first half. Petco ended the period with 1,377 U.S. pet care centers, down from 1,388 a year earlier. The market has reacted to these announcements by moving the company's shares 7.14% to a price of $2.70. For more information, read the company's full 10-Q submission here.
