Petco Reports Profit Growth and Continued Debt Reduction

CEO Joel Anderson credited the results to the company's "Reach for the Sky" strategy, which helped drive growth in consumables despite a slight sales disruption caused by a membership program relaunch. Net sales reached $1.5 billion, a marginal increase of 0.05% year-over-year, while comparable sales rose 0.6%. The company’s net income climbed significantly to $38.7 million, up from $14.0 million in the same period last year.

Financial discipline remained a priority for the retailer, with total debt falling to $1.48 billion from $1.59 billion a year ago. CFO Sabrina Simmons confirmed the company is reaffirming its full-year outlook, balancing strategic investments with the need to absorb ongoing supply chain pressures. Petco ended the quarter with 1,377 stores and a cash balance of $293.5 million, providing liquidity as it navigates the back half of the fiscal year.