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May 03, 2025
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.
Revenue by Segment
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
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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