# Petco (WOOF) Q2 2025 Financial Results Summary
Petco (Nasdaq: WOOF) announced its second quarter financial results for 2025 on August 28, 2025. Below is a summary of the key figures and insights from the report.
## Q2 2025 Overview
– **Net Sales:** $1.5 billion, a **decrease of 2.3%** compared to Q2 2024.
– **Comparable Sales:** Decreased by **1.4%** year over year.
– **Gross Profit Margin:** Increased by **approximately 120 basis points** to **39.3%** of net sales.
– **Operating Income:** Improved by **$40.6 million** to **$43.0 million**.
– **GAAP Net Income:** Increased by **$38.8 million** to **$14.0 million**.
– **Adjusted EBITDA:** Increased by **$30.3 million** to **$113.9 million**.
## Management Comments
– Joel Anderson, Petco’s CEO, stated that they met commitments for the quarter, allowing them to raise the earnings outlook for the full year.
– They are focused on strengthening their economic model and enhancing retail operating fundamentals while planning targeted investments for sustainable growth.
## Full Year 2025 Outlook
– **Net Sales Projection:** Expected to decline by **low single digits** year over year.
– **Adjusted EBITDA:** Projected between **$385 million to $395 million**.
– **Net Interest Expense:** Approximately **$130 million**.
– **Capital Expenditures:** Estimated at **$125 million to $130 million**.
– **Depreciation & Amortization:** Around **$200 million**.
– **Net Store Closures:** Approximately **25**.
## Third Quarter 2025 Outlook
– **Net Sales:** Expected to decline by **low single digits** year over year.
– **Adjusted EBITDA:** Projected between **$92 million to $94 million**.
## Financial Highlights
– **Net Income Per Share:**
– Basic: $0.05 compared to a loss of $0.09 in Q2 2024.
– Diluted: $0.05 compared to a loss of $0.09 in Q2 2024.
– **Weighted Average Shares Outstanding:**
– Basic: 279,058 shares in Q2 2025 vs. 273,074 shares in Q2 2024.
– Diluted: 285,741 shares in Q2 2025 vs. 273,074 shares in Q2 2024.
## Financial Position
– **Current Assets:** Totaled $939.6 million, a slight decrease from $973.6 million on February 1, 2025.
– **Total Assets:** $5.15 billion, down from $5.19 billion on February 1, 2025.
– **Current Liabilities:** Totaled $1.06 billion, down from $1.14 billion on February 1, 2025.
– **Stockholders’ Equity:** Increased to $1.14 billion from $1.11 billion on February 1, 2025.
## Cash Flow Highlights
– **Net Cash Provided by Operating Activities:** $70.4 million in the first half of 2025, compared to $61.0 million in the first half of 2024.
– **Free Cash Flow:**
– Q2 2025: $53.8 million vs. $42.0 million in Q2 2024.
– Year-to-Date: $9.9 million compared to $0.9 million in the same period last year.
## Dividends and Share Repurchases
– There was no mention of a quarterly dividend or share repurchase in the report.
This summary encapsulates Petco’s financial performance for Q2 2025, illustrating the company’s efforts to adapt and grow amidst the fluctuating market dynamics.
Here are the extracted tables in HTML format:
### PETCO HEALTH AND WELLNESS COMPANY, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited and subject to reclassification)
| 13 Weeks Ended | 26 Weeks Ended | |||
|---|---|---|---|---|
| August 2, 2025 | August 3, 2024 | August 2, 2025 | August 3, 2024 | |
| Net sales: | ||||
| Products | $ 1,225,605 | $ 1,263,749 | $ 2,467,496 | $ 2,543,480 |
| Services and other | $ 262,924 | $ 260,006 | $ 514,432 | $ 509,415 |
| Total net sales | $ 1,488,529 | $ 1,523,755 | $ 2,981,928 | $ 3,052,895 |
| Cost of sales: | ||||
| Products | $ 747,143 | $ 787,103 | $ 1,513,428 | $ 1,579,825 |
| Services and other | $ 156,067 | $ 155,927 | $ 313,213 | $ 313,685 |
| Total cost of sales | $ 903,210 | $ 943,030 | $ 1,826,641 | $ 1,893,510 |
| Gross profit | $ 585,319 | $ 580,725 | $ 1,155,287 | $ 1,159,385 |
| Selling, general and | ||||
| administrative expenses | $ 542,297 | $ 578,257 | $ 1,095,906 | $ 1,173,699 |
| Operating income (loss) | $ 43,022 | $ 2,468 | $ 59,381 | $ (14,314) |
| Interest income | $ (909) | $ (672) | $ (2,268) | $ (1,090) |
| Interest expense | $ 33,297 | $ 36,805 | $ 66,791 | $ 73,622 |
| Other non-operating loss | $ — | $ — | $ — | $ 2,665 |
| Income (loss) before income | ||||
| taxes and income from equity method | $ 10,634 | $ (33,665) | $ (5,142) | $ (89,511) |
| investees | ||||
| Income tax expense | $ 746 | $ (4,651) | $ 1,241 | $ (9,128) |
| Income from equity method | $ (4,084) | $ (4,191) | $ (8,694) | $ (9,077) |
| investees | ||||
| Net income (loss) attributable | ||||
| to Class A and B-1 common stockholders | $ 13,972 | $ (24,823) | $ 2,311 | $ (71,306) |
| Net income (loss) per Class A and B-1 | ||||
| common share: | ||||
| Basic | $ 0.05 | $ (0.09) | $ 0.01 | $ (0.26) |
| Diluted | $ 0.05 | $ (0.09) | $ 0.01 | $ (0.26) |
| Weighted average shares used | ||||
| in computing net income (loss) | ||||
| per Class A and B-1 common share: | ||||
| Basic | $ 279,058 | $ 273,074 | $ 278,303 | $ 271,421 |
| Diluted | $ 285,741 | $ 273,074 | $ 284,350 | $ 271,421 |
### PETCO HEALTH AND WELLNESS COMPANY, INC. CONSOLIDATED BALANCE SHEETS (In thousands, except per share amounts) (Unaudited and subject to reclassification)
| August 2, 2025 | February 1, 2025 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 188,748 | $ 165,756 |
| Receivables, less allowance for credit losses1 | $ 34,524 | $ 40,425 |
| Merchandise inventories, net | $ 608,506 | $ 653,329 |
| Prepaid expenses | $ 60,387 | $ 53,515 |
| Other current assets | $ 47,393 | $ 60,594 |
| Total current assets | $ 939,558 | $ 973,619 |
| Fixed assets | $ 2,311,922 | $ 2,265,915 |
| Less accumulated depreciation | $ (1,624,417) | $ (1,540,477) |
| Fixed assets, net | $ 687,505 | $ 725,438 |
| Operating lease right-of-use assets | $ 1,314,618 | $ 1,302,346 |
| Goodwill | $ 980,064 | $ 980,064 |
| Trade name | $ 1,025,000 | $ 1,025,000 |
| Other long-term assets | $ 206,537 | $ 187,963 |
| Total assets | $ 5,153,282 | $ 5,194,430 |
| LIABILITIES AND EQUITY | ||
| Current liabilities: | ||
| Accounts payable and book overdrafts | $ 423,269 | $ 492,878 |
| Accrued salaries and employee benefits | $ 130,688 | $ 157,460 |
| Accrued expenses and other liabilities | $ 192,249 | $ 177,079 |
| Current portion of operating lease liabilities | $ 306,902 | $ 306,400 |
| Current portion of long-term debt and other lease liabilities | $ 5,458 | $ 5,346 |
| Total current liabilities | $ 1,058,566 | $ 1,139,163 |
| Senior secured credit facilities, net, excluding current portion | $ 1,580,688 | $ 1,578,091 |
| Operating lease liabilities, excluding current portion | $ 1,047,757 | $ 1,037,206 |
| Deferred taxes, net | $ 220,992 | $ 217,712 |
| Other long-term liabilities | $ 106,176 | $ 108,628 |
| Total liabilities | $ 4,014,179 | $ 4,080,800 |
| Commitments and contingencies | ||
| Stockholders’ equity: | ||
| Class A common stock2 | $ 242 | $ 239 |
| Class B-1 common stock3 | $ 38 | $ 38 |
| Class B-2 common stock4 | $ — | $ — |
| Preferred stock5 | $ — | $ — |
| Additional paid-in-capital | $ 2,297,702 | $ 2,280,495 |
| Accumulated deficit | $ (1,146,748) | $ (1,149,059) |
| Accumulated other comprehensive loss | $ (12,131) | $ (18,083) |
| Total stockholders’ equity | $ 1,139,103 | $ 1,113,630 |
| Total liabilities and stockholders’ equity | $ 5,153,282 | $ 5,194,430 |
