Petco Posts 36% Q2 Profit Jump, Raises 2025 Earnings Outlook

Petco Health & Wellness reported better-than-expected fiscal second-quarter results for 2025, with GAAP earnings per diluted share turning positive to $0.05 and a 36.4% year-over-year increase in adjusted EBITDA to $113.9 million, reflecting improving profit margins despite a 2.3% decline in revenue to $1.49 billion. The company raised its full-year earnings guidance, projecting adjusted EBITDA between $385 million and $395 million, surpassing analyst estimates. CEO Joel Anderson highlighted that the strong first half of the year laid a solid foundation for Petco's ongoing transformation, emphasizing improved economic models and retail operations. Petco continues to focus on integrating digital and in-store shopping, expanding veterinary and wellness services, and growing its Vital Care membership program to enhance customer loyalty and spending. While sales trends remain under pressure with a 1.4% decline in comparable store sales, the company is investing selectively to support sustainable profitable growth. Management also assumes stable economic conditions and tariffs for the remainder of 2025 in their outlook.