The earnings call reflected a positive sentiment with Petco achieving significant profitability improvements and operational efficiencies, despite facing some sales challenges and store closures.

Company Guidance -

Q2 2025

During the Petco First Quarter 2025 Earnings Conference Call, the company provided guidance indicating a focus on improving profitability through gross margin expansion, SG&A leverage, and ROIC improvement. The first quarter showed a 1.3% decline in comparable sales and a 2.3% decline in net sales, partly due to 25 net store closures in 2024 and an additional 5 closures in Q1, bringing the total store count to 1,393. Despite these closures, Petco achieved a gross margin expansion of over 30 basis points to 38.2%, attributed to enhanced margin management strategies, including better average unit cost management and more robust pricing reviews. Adjusted EBITDA increased by $13.8 million to $89.4 million, representing 105 basis points expansion to 6% of sales. The company reiterated its full-year outlook, expecting net sales to decline in the low single digits, with adjusted EBITDA between $375 million and $390 million. Operational efficiency efforts are ongoing, with a focus on cost discipline, particularly in areas like marketing and store expenses. The company also highlighted efforts to enhance customer engagement and improve the retail experience, with initiatives like product resets and strategic end-cap displays.

Profitability Goals Exceeded

Petco delivered top-line results in line with expectations and over-delivered on profitability goals, showcasing the effectiveness of the team's efforts and strategy.

Gross Margin Expansion

Gross margin rate expanded by over 30 basis points to 38.2% with expansion across both product and services business, driven by disciplined execution and enhanced pricing strategies.

Operational Efficiencies

Achieved more than 180 basis points of expense leverage, excluding last year's onetime disposition costs, indicating successful cost management and operational improvements.

Services Growth

Services remain the fastest-growing business segment, with improvements in grooming and vet operations supporting gross margin expansion.

Inventory Management

Ending inventory was managed well, with a 5% reduction compared to last year, reflecting effective inventory control strategies.

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

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WOOF Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Aug 28, 2025	2025 (Q2)	0.01 / -	-0.02	―	―	―
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)
May 24, 2023	2023 (Q1)	0.05 / 0.06	0.17	-64.71% (-0.11)

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
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%
Sep 10, 2024	$3.07	$4.08	+32.90%

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.