Petco reaffirms full-year 2026 net sales outlook of flat to up 1.5% year over year
Company expects full-year 2026 adjusted EBITDA of $415 mln to $430 mln
Petco sees Q3 2026 net sales growth of 0.4% to 1.0% and adjusted EBITDA of $100 mln to $103 mln
Overview
U.S. pet supplies retailer's Q2 revenue was flat yr/yr, meeting analyst expectations
Company posted second consecutive quarter of positive comparable sales growth
Petco prepaid $75 mln in debt after quarter-end and reaffirmed full-year sales and adjusted EBITDA outlook
Result drivers
Tariff refunds - Q2 results included a $6.8 mln net benefit from IEEPA tariff refunds after investments in new assortments and incremental fuel and tariff costs
Membership program relaunch - Co said sales were disrupted by stronger-than-expected points redemption after relaunch of membership program
Consumables growth - Company said growth in consumables showed its turnaround strategy was gaining traction
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 8 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy"
Wall Street's median 12-month price target for Petco Health and Wellness Company Inc is $3.50, about 35.7% above its September 1 closing price of $2.58
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 13 three months ago
WOOF•
