Petco ends FY2025 with lower sales, doubles down on vet services
CURRENT BRIEF VERSION: Petco closed fiscal 2025 with net sales of $6.0 billion, down 2.5% year over year, after what executives described as a deliberate move away from unprofitable sales. At the same time, the retailer improved profitability: operating income rose to $120.4 million from $7.1 million, adjusted EBITDA increased 21.3% to $408.2 million, and net income turned positive at $9.1 million. On March 11, 2026, the company said it is now shifting from reset mode into a growth phase, branded “Reach for the Sky,” centered on consumables, fresh food, owned brands, and services, including veterinary hospitals, Vetco vaccination clinics, grooming, and training. Petco ended the year with 1,382 stores, expects 15 to 20 net store closures in fiscal 2026, and says sales could range from flat to up 1.5% this year. (corporate.petco.com)
Why it matters: For veterinary professionals, Petco’s update is less about retail softness than about where the company is placing its next bets. Petco says it had about 300 full-service veterinary hospitals and roughly 1,600 weekly Vetco clinics as of January 31, 2026, and management is positioning those services as a core differentiator in a tighter consumer market. That could mean continued investment in accessible preventive care, more integration between retail and clinical channels, and more pressure on independent practices to define where they compete, whether on convenience, continuity, pricing, or higher-acuity medicine. The broader retail backdrop also matters: in Brazil, newly merged pet retailers Petz and Cobasi reported combined 2025 revenue growth of 8.8%, with digital sales up 11.7%, services accelerating in the fourth quarter, and private-label gains helping lift adjusted net income 50.4%. That contrast underscores how much pet retail competition is still being shaped by omnichannel execution, owned brands, and service attachment, even as companies take different paths on store growth and investment. (sec.gov; globalpetindustry.com)
What to watch: Watch whether Petco can translate its profitability gains into actual traffic and service growth in 2026, especially as it expands fresh food capacity and works to improve productivity in its veterinary business. It is also worth watching whether Petco’s more measured approach can keep pace with peers elsewhere that are still growing through digital channels, private-label expansion, and service momentum. (corporate.petco.com; globalpetindustry.com)