Petco shares fell 4.2% after earnings, with the clearest disappointment being the membership relaunch’s unexpectedly high point redemptions, which weighed on Q2 net sales, particularly in services. Management said redemptions peaked and expects personalization to support growth in 2027, leaving that benefit ahead rather than in the current results.
- Sales were $1.5 billion; adjusted EBITDA was $122 million, including a $6.8 million net tariff refund. Management said profitability was solid relative to its financial outlook.
- Petco reported positive comparable sales for the second consecutive quarter, but said point redemption volumes far exceeded initial projections and negatively affected Q2 net sales.
- Consumables saw positive growth. New cat products and treats contributed gains, while live reptiles drove growth in reptile food and supplies.
- Veterinary hospital sales productivity improved, with total pet visits up by double digits.
- Petco prepaid an additional $75 million of debt on September 1. Management expects a positive impact from membership personalization to emerge in 2027.
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