The earnings call reflects a company making significant strides in improving profitability and operational efficiency, with notable progress in marketing and inventory management. However, challenges remain in achieving top-line growth, especially given the anticipated tough sales comparisons and tariff impacts in the second half. The sentiment is balanced between positive internal improvements and external sales challenges.

Company Guidance

During the Petco Second Quarter 2025 Earnings Conference Call, the company raised its earnings outlook due to significant progress in improving its operating model and retail fundamentals. The financial performance for Q2 showed sales aligning with expectations and a notable increase in profitability, with operating income rising by over $40 million and free cash flow exceeding $50 million. Petco reported $114 million in adjusted EBITDA for the quarter. The company has continued to optimize its processes, resulting in improvements in inventory per store and sales per square foot. Despite a 2.3% decrease in net sales, Petco saw a gross margin expansion of over 120 basis points to 39.3%, alongside a $36 million reduction in SG&A expenses. The firm ended the quarter with $190 million in cash and total liquidity of $684 million. For the full year, Petco anticipates adjusted EBITDA to be between $385 million and $395 million, with expectations of net sales declining in the low single digits due to store closures and tariff impacts.

Strong Improvement in Profitability

Operating income increased by over $40 million, and adjusted EBITDA reached $114 million, reflecting a $30 million increase and nearly 220 basis points expansion to 7.6% as a percent of sales.

Gross Margin Expansion

Gross margin expanded by more than 120 basis points to 39.3% due to disciplined promotional strategies and improved pricing and inventory management.

Successful Marketing Initiatives

The reintroduction of the 'Where the Pets Go' tagline and in-store events resonated well with customers, evidenced by increased customer engagement and improved NPS scores.

Inventory Management Success

Ending inventory was 9.5% below last year, while maintaining higher in-stocks for customers.

Petco Health and Wellness Company (WOOF) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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WOOF Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Nov 26, 2025	2025 (Q3)	0.01 / -	-0.02	―	―	―
Aug 28, 2025	2025 (Q2)	0.01 / 0.09	-0.02	545.00% (+0.11)
Jun 05, 2025	2025 (Q1)	-0.02 / <0.01	-0.04	122.50% (+0.05)
Mar 26, 2025	2024 (Q4)	<0.01 / 0.02	0.02	-20.00% (>-0.01)
Dec 05, 2024	2024 (Q3)	-0.04 / -0.02	-0.05	60.00% (+0.03)
Sep 10, 2024	2024 (Q2)	-0.02 / -0.02	0.06	-133.33% (-0.08)
May 22, 2024	2024 (Q1)	-0.06 / -0.04	0.06	-166.67% (-0.10)
Mar 13, 2024	2023 (Q4)	0.02 / 0.02	0.2	-90.00% (-0.18)
Nov 29, 2023	2023 (Q3)	0.02 / -0.05	0.16	-131.25% (-0.21)
Aug 24, 2023	2023 (Q2)	0.06 / 0.06	0.19	-68.42% (-0.13)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

WOOF Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Aug 28, 2025	$3.23	$3.99	+23.53%
Jun 05, 2025	$3.62	$2.78	-23.20%
Mar 26, 2025	$2.44	$3.21	+31.56%
Dec 05, 2024	$4.90	$5.29	+7.96%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.