Pet Valu same-store sales declined in 2024, but revenue is up as tariffs loom
The Canadian pet retailer released new earnings guidance, assuming new trade barriers would be short-lived.
Ontario-based pet retailer Pet Valu posted $388.1 million (€364M) in system-wide sales in the fourth quarter of 2024, marking a 2.4% year-on-year (YoY) increase.
Revenue reached $295.1 million (€276.8M) between October and December, up 2.9% YoY. However, same-store sales dipped by 0.2% YoY. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was $68.2 million (€64M), down 4.3% YoY.
For the full year, sales increased 2.3% to $1.5 billion (€1.4B). Same-store sales declined 0.5%, and EBITDA increased 6.9% to $247.1 million (€231.9M).
Net income was $87.4 million (€82M), a 2.3% decline. Growth was driven primarily by new store openings, which are expected to continue in 2025.
CEO Richard Maltsberger says 2024 was a “dynamic year” with “strong operational execution.” “Our team’s efforts and execution resulted in an improved trajectory in our same-store sales while meeting or exceeding our revenue, adjusted EBITDA and adjusted EPS expectations.”
The company noted supply chain improvements, a website refresh and the launch of its Performatrin healthy pet food brand.
Outlook: tariff trouble?
The company released its earnings outlook for 2025, projecting revenue between $1.17 billion (€1.09B) and $1.2 billion (€1.1B). However, the guidance did not consider the possibility that tariffs between the US and Canada, which went into effect on the morning of the earnings call, may last for a substantial period.
At the earnings call, Pet Valu executives warned that they anticipate a weaker consumer environment caused by the inflationary pressure of tariffs on Canadian consumers and the direct costs associated with imports.
Approximately 23% of the company’s 2024 merchandise purchases were based in US dollars, and about 15% were directly imported from the US.
“We will continue to monitor the situation and believe we have the right mechanisms in place to adapt our sourcing if necessary,” says Chief Financial Officer Linda Drysdale.
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