Petco Health and Wellness Company, Inc. (NASDAQ: WOOF) Q1 2025 Earnings Call | 6/5/2025

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Petco Health and Wellness Company, Inc. (NASDAQ: WOOF) reported Q1 2025 results on June 5, 2025, with net sales of $1.5 billion, down 2.3% year-over-year, and comparable sales declining 1.3%. Despite the sales decrease, the company delivered significant profitability improvements: gross profit margin expanded by 30 basis points to 38.2%, and operating income jumped by $33.1 million to $16.4 million. Adjusted EBITDA rose $13.8 million to $89.4 million, and the GAAP net loss improved by $34.8 million to $11.7 million, reflecting effective cost management and operational discipline. Product sales declined 3% year-over-year, while services and other revenue grew 1%, demonstrating the resilience of Petco’s service offerings. The company closed five net stores in Q1 as part of ongoing fleet optimization, ending the quarter with 1,393 locations. Liquidity improved 5% to $648 million, and net debt was reduced by 2% to $1.46 billion. Petco reaffirmed its full-year 2025 outlook, expecting net sales to decline in the low single digits and adjusted EBITDA between $375 million and $390 million. For Q2, the company projects similar sales trends and adjusted EBITDA of $92–$94 million. Management emphasized a multi-phase transformation strategy focused on strengthening retail fundamentals, expanding gross margin, leveraging SG&A, and improving return on invested capital. CEO Joel Anderson described 2025 as a “year of transformation,” highlighting progress in operational efficiency and a renewed focus on profitable growth. Outlook: FY2025 net sales: Down low single digits YoY FY2025 adjusted EBITDA: $375–$390 million Q2 2025 adjusted EBITDA: $92–$94 million About Inside Ticker: For more expert analysis and real-time updates on Petco Health and Wellness Company, Inc. (NASDAQ: WOOF) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #Petco #WOOF #EarningsCall #Q12025 #PetRetail #Profitability #StockMarket #Investing #InsideTicker