Petco Health and Wellness Company, Inc. (WOOF) Earnings Call Transcripts

Petco Health and Wellness Company, Inc.'s Latest Earnings Call - Q1 FY2027

Petco Health and Wellness Company, Inc. reported its Q1 FY2026 earnings, showing a return to positive comparable sales with a 0.7% increase, and net sales up 0.2% to $1.5 billion. The company exceeded its quarterly outlook for both top line and adjusted EBITDA, which increased by 8.8% year-over-year to $97.3 million. Petco reaffirmed its full-year guidance, expecting net sales to be flat to up 1.5% and adjusted EBITDA between $415 million and $430 million. The reaffirmation comes despite absorbing higher fuel costs, indicating confidence in its strategic initiatives.

Reported metrics

Guidance from management

Petco reaffirmed its full-year guidance, expecting net sales to be flat to up 1.5% and adjusted EBITDA between $415 million and $430 million. The company is absorbing higher fuel costs within this guidance.

What management said

Thanks, Michael. I think as you -- as I reflect back on the quarter, I think less about market share a little bit and I think more about the sequential improvements. And we saw improvements in all 3 of those categories, both consumables, supplies and companion animals and services. So I think those are all really good early indicators that the new strategy is taking hold and the customer is reacting positively to it....

It's Sabrina. And that's a great question. To our own range, we are really pleased that in the first quarter, we beat a couple of million, $3 million at the high end. The environment has continued to evolve, and there's a lot of different new cycles going on. We're super pleased that in the face of that, we are reaffirming our full year guidance and in particular, 1 of the big changes from when we initially laid out ...

What analysts pressed on

Analysts questioned the decision to reaffirm full-year guidance despite Q1 outperformance, with concerns about conservatism in the outlook. There were also inquiries about market share trends and consumer behavior across income cohorts.

Main topics on the call

• Return to Positive Comparable Sales — Petco achieved a 0.7% increase in comparable sales, marking a return to positive territory. CEO Joel Anderson highlighted that this was driven by improvements across consumables, services, and companion animals. 'We deli...
• Expansion of Profitability — The company's gross margin expanded by 21 basis points to 38.4%, and operating profit improved by 50.5% year-over-year. CFO Sabrina Simmons noted, 'Our expanded gross margin and expense leverage resulted in operating pro...
• Cat Category Performance — Petco saw outperformance in the cat category, which contributed significantly to the improved trends in consumables. Anderson stated, 'We anticipated the recent spike in demand for cat products.'
• Services as a Growth Engine — Petco's services, including vet hospitals and grooming, continue to be a significant growth engine. The company plans to optimize 25 underutilized hospitals this year. 'Services are an important growth engine of ours,' s...

Read the full Petco Health and Wellness Company, Inc. transcript (Q1 FY2027) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 38 Petco Health and Wellness Company, Inc. earnings call transcripts on record, spanning March 18, 2021 to June 3, 2026. Based on this history, Petco Health and Wellness Company, Inc. reports quarterly. The most recent call on file is dated June 3, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

WOOF

Exchange

NasdaqGS

Country

US

Sector

Consumer Discretionary

Industry

Specialty Retail

Calls on record

38

First call

March 18, 2021

Most recent

June 3, 2026

Reporting cadence

quarterly