Petco Returns to Comparable Sales Growth
The specialty retailer reported first-quarter net sales of $1.5 billion.
Petco Health & Wellness Company (WOOF) returned to positive comparable sales growth in the first quarter of 2026.
The result marked a reversal in the company's sales trajectory. Comparable sales increased 0.7% year over year, following a 1.6% decrease in the fourth quarter of 2025.
Net sales for the specialty retailer reached $1.5 billion, a 0.2% increase year over year. This followed a 2.4% decrease in net sales during the previous quarter.
Profitability metrics continued a steady upward trend. The gross margin rate expanded 21 basis points to 38.4% year over year, adding to a 37 basis point increase reported in the fourth quarter of 2025. Operating margin rose 55 basis points to 1.6% year over year, though the increase was smaller than the 98 basis point gain seen in the prior quarter.
Adjusted EBITDA for the first quarter was $97.3 million. This represented an increase from the $89.4 million reported in the first quarter of the prior year, though it trailed the $106.3 million recorded in the fourth quarter of 2025.
The company continued to reduce its physical footprint. Petco closed a net of four stores during the quarter, ending the period with 1,378 locations. This followed the closure of seven net stores in the fourth quarter of 2025.
Petco reaffirmed its full-year 2026 outlook in June. The company expects net sales to be flat to up 1.5% year over year and projects Adjusted EBITDA between $415 million and $430 million.
On August 1, 2026, the company appointed Jeffrey Naylor to its Board of Directors and as Audit Committee Chair. Naylor previously served as the chief financial officer of The TJX Companies.