Petco Q2 sales flat as membership points redemption weighs; reaffirms outlook

Petco Health and Wellness

02/09/2026 21:20

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

Outlook
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

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

Company press release: ID:nPn6KRYp1a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Meet
$1.49 bln
$1.49 bln (10 Analysts)
Q2 EPS
 
$0.13
 

Analyst Coverage
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

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)