Petco Reports Wider Loss in Q1, Reaffirms Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 03 2026
0mins
Source: NASDAQ.COM
- Financial Performance: Petco reported a net loss of $15.1 million in Q1, translating to a loss of $0.05 per share, which widened from a $11.7 million loss last year, primarily due to an $11.8 million loss on debt extinguishment and modification, indicating financial management challenges.
- Sales Growth: Despite the losses, Petco's net sales edged up 0.2% year-over-year to $1.50 billion, with comparable sales increasing by 0.7%, reflecting growth in services and other revenue that offset a slight decline in product sales, showcasing the company's efforts in diversifying revenue streams.
- Margin Improvement: The company saw its gross margin expand by 21 basis points to 38.4%, while operating margin improved from 1.1% to 1.6%, indicating progress in cost control and operational efficiency despite the ongoing losses.
- Future Outlook: Petco reaffirmed its fiscal 2026 sales outlook, projecting net sales to remain flat or increase by 1.5% year-over-year, and forecasts a net sales growth of about 0.3% for Q2, reflecting a cautiously optimistic view on future market conditions.
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Analyst Views on WOOF
Wall Street analysts forecast WOOF stock price to rise
7 Analyst Rating
2 Buy
4 Hold
1 Sell
Hold
Current: 2.830
Low
3.00
Averages
3.55
High
4.53
Current: 2.830
Low
3.00
Averages
3.55
High
4.53
About WOOF
Petco Health and Wellness Company, Inc. is a pet health and wellness company focused on improving the lives of pets, pet parents, and its own Petco partners. It offers pet parents a full spectrum of product choices with products to address ongoing humanization and premiumization trends in the market. It integrates its product offering with its services business, building on the foundation of treating the whole pet, including their physical, mental and social well-being. Its service offering includes veterinary care, grooming, and training. It operates a network of full-service, general practice veterinary hospitals complemented by prescription and insurance offerings. It operates more than 1,500 pet care centers across the United States, Mexico and Puerto Rico and a growing network of on-site veterinary hospitals and mobile veterinary clinics. It offers a complete pet health and wellness ecosystem accessible through its pet care centers and digitally at petco.com and on the Petco app.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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