Revenue growth has largely stalled with a marginal 0.2% increase in 2026Q1, while operating margins remain constrained by high overhead, peaking at only 2.9% in 2025Q2.
| Sales/Revenue | 5.97B | 5.96B | 6.12B | 6.26B | 6.04B | 5.81B | 4.92B | 4.43B | 4.39B |
| Revenue Growth % | -1.2% | -2.53% | -2.22% | 3.63% | 3.94% | 18.03% | 10.95% | 0.96% | - |
| Cost of Goods Sold | 3.66B | 3.66B | 3.79B | 3.9B | 3.61B | 3.38B | 2.81B | 2.53B | 2.49B |
| COGS % of Revenue | - | 61.33% | 62% | 62.37% | 59.79% | 58.21% | 57.18% | 57.01% | 56.63% |
| Gross Profit | 2.3B | 2.31B | 2.32B | 2.35B | 2.43B | 2.43B | 2.11B | 1.91B | 1.9B |
| Gross Margin % | 38.48% | 38.67% | 38% | 37.63% | 40.21% | 41.79% | 42.82% | 42.99% | 43.37% |
| Gross Profit Growth % | - | -0.83% | -1.25% | -3.02% | 0.02% | 15.18% | 10.5% | 0.09% | - |
| Operating Expenses | 2.18B | 2.18B | 2.32B | 3.53B | 2.2B | 2.16B | 1.91B | 1.8B | 1.75B |
| OpEx % of Revenue | - | 36.65% | 37.89% | 56.5% | 36.47% | 37.2% | 38.87% | 40.5% | 39.76% |
| Selling, General & Admin | 2.18B | 2.18B | 2.32B | 2.31B | 2.2B | 2.16B | 1.91B | 1.78B | 1.73B |
| SG&A % of Revenue | - | 36.65% | 37.89% | 36.95% | 36.47% | 37.2% | 38.87% | 40.07% | 39.32% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 1.22B | 0 | 0 | 0 | 19M | 373.17M |
| Operating Income | 110.3M | 120.43M | 7.05M | -1.18B | 225.56M | 266.07M | 194.42M | 110.6M | -214.72M |
| Operating Margin % | 1.85% | 2.02% | 0.12% | -18.87% | 3.74% | 4.58% | 3.95% | 2.49% | -4.89% |
| Operating Income Growth % | - | 1608.03% | 100.6% | -623.28% | -15.23% | 36.85% | 75.79% | 151.51% | - |
| EBITDA | 305.77M | 317.14M | -1.46M | -979.53M | 419.39M | 438.5M | 369.26M | 284.14M | -27.72M |
| EBITDA Margin % | 5.12% | 5.32% | -0.02% | -15.66% | 6.95% | 7.55% | 7.51% | 6.41% | -0.63% |
| EBITDA Growth % | 4.3% | 21777.58% | 99.85% | -333.56% | -4.36% | 18.75% | 29.96% | 1124.94% | - |
| D&A (Non-Cash Add-back) | 195.71M | 196.71M | -8.51M | 200.78M | 193.83M | 172.43M | 174.84M | 173.54M | 187M |
| EBIT | 139.87M | 146.53M | 15.56M | -1.17B | 213.92M | 279.79M | 177.53M | 110.94M | -214.76M |
| Net Interest Income | -122.95M | -124.89M | -139.82M | -147.5M | -100.61M | -77.33M | -218.43M | -252.68M | -243.32M |
| Interest Income | 6.44M | 6.3M | 3.71M | 3.4M | 1.03M | 62K | 653K | 335K | 420K |
| Interest Expense | 130.49M | 131.2M | 143.53M | 150.91M | 101.64M | 77.4M | 219.08M | 253.02M | 243.74M |
| Other Income/Expense | -120.02M | -105.1M | -116.35M | -127.51M | -100.3M | -52.79M | -235.98M | -250.24M | -243.78M |
| Pretax Income | 8.68M | 15.33M | -109.3M | -1.31B | 125.26M | 213.28M | -41.55M | -139.64M | -458.5M |
| Pretax Margin % | 0.15% | 0.26% | -1.79% | -20.91% | 2.08% | 3.67% | -0.84% | -3.15% | -10.44% |
| Income Tax | 3.1M | 6.27M | -7.48M | -27.61M | 35.35M | 53.47M | -3.34M | -35.66M | -45.84M |
| Effective Tax Rate % | 35.7% | 40.87% | 6.84% | 2.11% | 28.22% | 25.07% | 8.03% | 25.54% | 10% |
| Net Income | -23.54M | 9.07M | -101.82M | -1.28B | 90.8M | 164.42M | -26.48M | -95.87M | -413.79M |
| Net Margin % | -0.39% | 0.15% | -1.66% | -20.47% | 1.5% | 2.83% | -0.54% | -2.16% | -9.42% |
| Net Income Growth % | 16.53% | 108.9% | 92.05% | -1509.91% | -44.77% | 720.84% | 72.38% | 76.83% | - |
| Net Income (Continuing) | 5.58M | 9.07M | -101.82M | -1.28B | 89.91M | 159.81M | -38.22M | -103.98M | -413.79M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | -18.2M | -13.58M | -8.33M | 0 |
| EPS (Diluted) | -0.08 | 0.03 | -0.37 | -4.78 | 0.34 | 0.62 | -0.13 | -0.07 | -0.28 |
| EPS Growth % | 18.91% | 108.57% | 92.26% | -1505.88% | -45.16% | 576.92% | -97.87% | 76.54% | - |
| EPS (Basic) | - | 0.03 | -0.37 | -4.78 | 0.34 | 0.62 | -0.13 | -0.07 | -0.28 |
| Diluted Shares Outstanding | 283.68M | 286.15M | 273.41M | 267.55M | 265.95M | 265.34M | 210.68M | 1.46B | 1.46B |
| Basic Shares Outstanding | 283.68M | 279.56M | 273.41M | 267.55M | 265.52M | 265.19M | 203.72M | 1.44B | 1.46B |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
High fixed-cost operating leverage
As reported in recent financial filings, Petco's revenue growth has stalled, with the most recent quarter showing a marginal 0.2% increase following several periods of contraction, suggesting that the post-pandemic demand surge has fully dissipated and organic growth remains elusive in a highly competitive retail environment.
The company's inability to consistently grow top-line revenue indicates that its physical footprint and service-led strategy are struggling to capture incremental market share. Investors should monitor whether this stagnation reflects a fundamental loss of pricing power or a broader consumer trade-down away from premium pet offerings.
Based on the provided income statement data, gross margins have fluctuated between 34.7% and 39.3% over the last ten quarters, highlighting the difficulty in maintaining consistent profitability while balancing high-margin service offerings against the lower-margin, price-sensitive consumables segment that dominates the company's total revenue mix.
The inconsistency in gross margin performance suggests that Petco lacks the structural pricing power to fully offset inflationary pressures or competitive discounting. This volatility complicates the path to sustainable net profitability, as the company remains tethered to the margin-dilutive nature of its core retail business.
According to the quarterly income statement, operating income remains razor-thin, peaking at only 2.9% in 2025Q2, which demonstrates that the company's high fixed-cost structure prevents meaningful operating leverage even when gross profit margins show temporary improvement during specific periods of the fiscal year.
The persistent burden of SG&A expenses relative to gross profit suggests that the company's physical infrastructure and corporate overhead are not scaling efficiently. This lack of operating leverage implies that any minor disruption in foot traffic or service utilization could quickly push the firm into an operating loss position.
As indicated by the historical income data, Petco has reported net losses in eight of the last ten quarters, revealing that despite positive operating income in several periods, the company's bottom line is consistently eroded by non-operating costs and the high expense of maintaining its service-heavy business model.
The recurring nature of these net losses warrants further investigation into the company's capital structure and interest obligations. Investors should be cautious, as the reported earnings quality appears weak, with net income failing to reflect the operational scale the company has attempted to build through its clinic expansion.
Based on an analysis of the provided figures, short-sellers would likely focus on the company's inability to achieve consistent net profitability despite significant investment in veterinary services, suggesting that the 'platform' strategy may be failing to generate the expected high-margin recurring revenue needed to offset retail headwinds.
The core risk remains that the veterinary and grooming services are not effectively converting customers into high-margin, long-term brand loyalists. If the service-to-retail attachment rate does not improve, the company may be forced to reconsider its capital-intensive expansion, potentially leading to further balance sheet strain.
Quick answers to the most common questions about buying WOOF stock.
For fiscal year 2025, Petco Health and Wellness Company, Inc. (WOOF) reported total revenue of $5.96B. This represents a 35.7% increase compared to $4.39B in 2018.
Petco Health and Wellness Company, Inc. (WOOF) is profitable, generating $9.1M in net income for the fiscal year ending 2025 with a net profit margin of 0.2%.
Petco Health and Wellness Company, Inc. (WOOF) reported an operating income of $120.4M, resulting in an operating profit margin of 2.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Petco Health and Wellness Company, Inc. (WOOF) generated $2.31B in gross profit for the year, representing a gross profit margin of 38.7%. This demonstrates the company's core pricing power and production efficiency.