Petco Posts 36% Profit Jump in Fiscal Q2
Petco Health and Wellness (NASDAQ:WOOF), a national pet care and retail chain, published its second-quarter fiscal 2025 results on August 28, 2025. The report showed expanding profit margins. Free cash flow improved year over year, and Operating income surged year over year, even as sales modestly declined. Revenue (GAAP) landed at $1.49 billion, down 2.3% compared to last year and matching prior expectations. Earnings per diluted share (GAAP) turned positive to $0.05 from a loss last year. Notable cost discipline drove a 36.4% year-over-year increase in adjusted EBITDA to $113.9 million, which led management to lift its annual profit guidance. The quarter marked a clear step forward on profitability and execution, though sales trends remain under pressure.
Petco Health and Wellness is a nationwide pet retailer with stores and a growing ecommerce platform. It offers a range of pet products, grooming, and training services at more than a thousand U.S. locations. In recent years, it has focused on combining digital shopping with in-store options, growing its veterinary services, and building the Vital Care membership program to keep customers engaged. The company also invests in developing its workforce to provide consistent customer service, referring to employees as "partners" and offering career development programs.
The business is working to differentiate itself through integrated services and flexible shopping methods. Recent strategy centers on expanding services within stores, optimizing its assortment to match customer preferences, and increasing efficiency at all levels. The Vital Care program, offering regular pet care and perks via membership, is central to its long-term plan for building loyalty and encouraging spending across both products and services.
Source Fool.com
