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May 03
Petco Q1 2025 Earnings Report
Petco reported Q1 2025 results with improved margins and lower net loss despite a slight revenue decline.
Key Takeaways
Petco delivered better-than-expected Q1 2025 results, with gross margin expansion and increased operating income. Revenue and comparable sales declined modestly year over year, but the company reaffirmed its full-year guidance.
Revenue declined 2% YoY to $1.49B, in line with guidance.
Gross margin rose 30 basis points to 38.2%.
Operating income turned positive at $16.4M, improving by $33.1M YoY.
Net loss narrowed significantly to $11.7M from $46.5M a year earlier.
Petco
Petco
Petco Revenue by Segment
Revenue by Segment
Products Revenue
CapyFin.comServices and Other Revenue
CapyFin.com Forward Guidance
Petco reaffirmed its FY 2025 guidance, projecting stable revenue with EBITDA between $375M–$390M, assuming tariff levels remain unchanged.
Positive Outlook
- Full-year adjusted EBITDA expected between $375M and $390M.
- Capital expenditures forecasted at $125M to $130M.
- Reaffirmed full-year outlook despite macro pressures.
- Q2 EBITDA forecasted between $92M and $94M.
- Operating model reset progressing as planned.
Challenges Ahead
- Net sales expected to decline low single digits YoY.
- Macroeconomic pressures such as tariffs remain a concern.
- Continued cost pressures and inflation.
- Cash flow from operations negative in Q1.
- Net loss persists despite YoY improvement.
Revenue & Expenses
Visualization of income flow from segment revenue to net income