Pet Valu nears 800 store mark in a mixed financial quarter

System-wide sales for the Canadian pet retailer totaled C$353.7 million ($257.1M/€235.5M) from April to June 2024. This marks a 2.8% year-on-year (YoY) increase from C$343.9 million ($250M/€229M) during the same period last year.

Revenue also improved by 3.5% YoY to C$265.2 million ($192.8M/€176.6M), led by franchise growth.

“Our business continued to deliver solid profitability and revenue growth while successfully implementing key strategic initiatives in [the] second quarter,” says Pet Valu CEO and President Richard Maltsbarger.

Income and profits

However, net income declined to C$17.8 million ($12.9M/€11.8M) from C$24.1 million ($17.5M/€16M) last year.

The company posted C$87.7 million ($63.7M/€58.4M) in gross profits in the second quarter of 2024, a 4.8% decline. Higher distribution and occupancy costs, higher wholesale merchandise sales and discounts from planned promotional activities primarily drove the negative trend.

Same-store sales growth was negligible this quarter as the 2.5% increase in same-store average spend per transaction was offset by a 2.4% decline in same-store transactions.

Store count

Pet Valu opened 5 new stores in Q2 2024, bringing the total outlets to 799 across its network this quarter. In July, the retailer opened its 800th location.

The Canadian pet retailer also implemented “key strategic initiatives,” including launching its upgraded digital platform and the nationwide rollout of frozen raw and gently-cooked pet nutrition products under the Performatrin Culinary brand.

2024 outlook

Pet Valu forecasts financial year (FY) 2024 revenue to be between C$1.08 billion ($785.2M/€719.3M) and C$1.11 billion ($807.1M/€739.3M). This would be slightly higher than the numbers for 2023 when it hit C$1 billion ($727.1M/€666.1M) in revenue.

The retailer targets 40-50 store openings to push the total count to 833.