Petco closes FY2025 with lower sales, higher profit

Petco closed fiscal 2025 with lower sales, but notably stronger profitability, as the retailer said it deliberately pulled back from unprofitable volume and moved into a new growth phase. Full-year net sales fell 2.5% to $6.0 billion, while adjusted EBITDA rose 21.3% to $408.2 million, operating income climbed to $120.4 million from $7.1 million, and the company finished the year with 1,382 stores after seven net closures in the fourth quarter. In announcing results on March 11, 2026, CEO Joel Anderson said the company had “rebuilt the foundation” of its economic model and is now shifting to its “Reach for the Sky” strategy, centered on fresh food, product innovation, owned brands, and services. Petco’s investor materials say that strategy includes expanding fresh food, launching new national brands, ramping owned brands in food and supplies, and staying committed to its veterinary business by first improving productivity, then scaling it. (corporate.petco.com)

Why it matters: For veterinary professionals, the key signal isn’t just softer retail sales, but where Petco says it plans to invest next. The company is positioning services, including veterinary care, as one of four core growth pillars, alongside product, stores, and omnichannel operations. Its March 2026 presentation describes a nationwide network of groomers, trainers, veterinarians, and other pet care staff as a strategic differentiator, and says the company is committed to the vet business, with an initial focus on improving productivity before broader expansion. That suggests Petco is still treating veterinary services as part of its long-term traffic, retention, and cross-sell model, even as it remains disciplined on store count and capital allocation. (ir.petco.com)

What to watch: Watch whether Petco can turn its 2026 plan into positive comparable sales while translating fresh-food and services investments into higher utilization at existing veterinary locations. (corporate.petco.com)