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Petco Highlights 2025 Profitability Gains Amid Sales Decline

Story Highlights
  • In 2025 Petco reversed losses and boosted margins despite modest sales declines.
  • Petco strengthened its balance sheet, refinanced debt and signaled cautious 2026 growth with more store closures.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Petco Highlights 2025 Profitability Gains Amid Sales Decline

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Petco Health and Wellness Company ( (WOOF) ) has provided an announcement.

On March 11, 2026, Petco reported fourth quarter and full year 2025 results showing lower sales but sharply improved profitability after an operational reset. For 2025, net sales fell 2.5% to $6.0 billion and comparable sales declined 1.6%, yet gross margin expanded, operating income rose to $120.4 million from $7.1 million and net income swung to $9.1 million from a $101.8 million loss.

Fourth quarter net sales declined 2.4% to $1.5 billion, but operating income surged 83.2% and adjusted EBITDA grew 10.6%, coming in well above outlook as the retailer closed a net seven stores to end the year with 1,382 locations. Management highlighted stronger cash generation, a leverage ratio reduced from 4.2x to 3x, and a completed debt refinancing extending maturities to 2031, while guiding 2026 net sales to flat-to-modest growth, higher adjusted EBITDA and an additional 15–20 net store closures.

The most recent analyst rating on (WOOF) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on Petco Health and Wellness Company stock, see the WOOF Stock Forecast page.

Spark’s Take on WOOF Stock

According to Spark, TipRanks’ AI Analyst, WOOF is a Neutral.

The score is held back primarily by weak financial profitability (losses and negative ROE) and bearish technicals (below key moving averages with negative MACD). These are partially offset by improving cash flow and leverage trends, plus a more positive earnings-call outlook driven by higher adjusted EBITDA guidance and strong recent free cash flow, supported by refinancing actions to improve financial flexibility.

To see Spark’s full report on WOOF stock, click here.

More about Petco Health and Wellness Company

Petco Health and Wellness Company operates in the pet care retail industry, offering pet food, supplies, services and membership offerings across more than 1,500 stores in the U.S., Mexico and Puerto Rico, as well as online and through its app. The company positions itself as a comprehensive destination for pet parents, combining products, veterinary care, grooming and adoption partnerships to support the pet‑human bond.

Average Trading Volume: 1,791,497

Technical Sentiment Signal: Sell

Current Market Cap: $655.3M

Learn more about WOOF stock on TipRanks’ Stock Analysis page.

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