Petco reported net sales of $1.5 billion for the second quarter of fiscal 2026, a marginal rise of 0.05% from a year earlier, according to the company’s filing.
Quarterly performance and profit margins
Comparable sales increased 0.6%, marking the retailer’s second straight quarter of growth. The consumables segment supplied almost half of total revenue, while supplies and companion animals accounted for about a third. Services made up the remaining 18%.
Gross profit climbed to $591.1 million, lifting the margin to 39.7%, up 37 basis points. Net income surged 176% to $38.7 million, helped by a $6.8 million benefit from tariff refunds. Operating income rose 11.1% to $47.8 million.
Live reptiles boost companion‑animal sales
CEO Joel Anderson told investors that demand for live reptiles and related food drove the strongest gains in the companion‑animal segment between April and June. “Companion animal is a highly differentiated category where our physical store provides a distinct competitive advantage,” he said.
The reptile focus complemented new SKUs from well‑known brands, especially in cat treats, which supported the launch of the private‑label Cat Candy Shop. Anderson also highlighted growth in the “gardening with your pets” category, driven by potted houseplants and pet‑friendly garden seeds.
For pet owners, the expansion of reptile offerings means more choices at a local store rather than hunting online. It also suggests that hobbyists can find specialized supplies without traveling far, which may keep spending within the community. The trend could encourage other retailers to broaden their live‑animal selections.
Petco ended the quarter with 1,377 stores nationwide after closing a single location, and it plans to shutter 15 to 20 stores in the upcoming quarter.
Guidance and future expectations
For the full year, the company reaffirmed guidance for flat to 1.5% sales growth and adjusted EBITDA between $415 million and $430 million. Third‑quarter net sales are projected to rise 0.4%‑1%, with adjusted EBITDA of $100 million to $103 million.
First‑half results showed flat net sales of $2.9 billion and gross profit of $1.1 billion, while net income jumped tenfold to $23.5 million. The retailer’s emphasis on in‑store experiences, such as engaging customers during events like the World Cup, remains a core part of its strategy.
