Petco ends FY2025 with lower sales, keeps services in growth plan

Petco closed fiscal 2025 with softer top-line results, but stronger profitability as it continued to pull back from lower-quality sales and shift attention to higher-margin categories and services. The retailer reported full-year net sales of $6.0 billion, down 2.5% year over year, while adjusted EBITDA rose 21.3% to $408.2 million and operating income climbed to $120.4 million from $7.1 million a year earlier. In the fourth quarter, sales fell 2.4% to about $1.5 billion, but operating income increased 83.2% to $31.9 million. For 2026, Petco said it expects sales to range from flat to up 1.5%, and it is rolling out a “Reach for the Sky” strategy centered on consumables, fresh food, product innovation, and services. (corporate.petco.com)

Why it matters: For veterinary professionals, the most relevant signal is that Petco is still positioning services as part of its growth model even while tightening the broader business. Company materials and follow-on reporting point to continued focus on wholly owned veterinary hospitals, vaccination clinics, grooming, and dog training, alongside fresh food and owned-brand expansion. Petco’s latest annual filing said it had about 300 full-service veterinary hospitals and more than 1,500 weekly Vetco clinics as of February 1, 2025, underscoring the scale of its existing care footprint. That suggests Petco is not retreating from care delivery, but trying to make those assets more productive inside a more disciplined retail strategy. (globalpetindustry.com)

What to watch: Watch whether Petco’s 2026 growth plan translates into measurable expansion or higher utilization in hospitals and clinics, not just more freezer space and product turns. (petfoodprocessing.net)