Pet Valu: store openings and franchise revenue drives Q3 earnings

Pet Valu reported a revenue of CA$289.5 million ($209M/€195M) in Q3 2025, up 4.9% year-over-year (YoY). The increase was primarily due to growth in retail sales and franchise revenue.

For instance, system-wide sales increased 4.4% YoY, supported by the opening of 45 new stores in the last 12 months. Same-store sales also grew 2.3%.

The Ontario-based pet retailer reported a net income of CA$24.9 million ($18M/€17M) in Q3, an increase of 7.4% compared to the same period last year.

Gross profit and EBITDA

Gross profit also increased by 6.9% to CA$95.6 million ($69M/€64M) in Q3, while gross profit margin was 33%, up from 32.4% during the same period in 2024.

Meanwhile, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) decreased by 1.5% YoY to CA$63.6 million ($46M/€43M). 

This was due to higher selling, general and administrative (SG&A) expenses and increased software-as-a-service (SaaS) fees, partially offset by higher gross profit excluding costs related to the supply chain transformation.

9M overview

Year to date, Pet Valu reported revenue of CA$849.2 million ($611M/€552M), a 5.8% increase from the same period last year. 

Net income for the period was CA$68.4 million ($49M/€44M), a 17% surge from 9M FY2024.

Adjusted EBITDA was CA$182 million ($131M/€118M), up 2% YoY, accounting for 21.5% of revenue.

Expansion and upgrades

In the first 9 months of 2025, Pet Valu opened 26 new stores, 16 of which launched in Q3. This brings its network to 849 stores to date.

The Canadian pet retailer also announced the opening of its new distribution center in Calgary, approximately 3,326 km from Ottawa.

The 295,000 sq ft Calgary distribution center is part of a CA$100 million ($71.8M/€61.1M) investment aimed at consolidating 9 company-operated and third-party warehouses into 3 new, partially automated facilities.

Pet Valu also completed 91 store renovations, expansions and relocations this year to date, with 72 carried out during Q3.

Outlook

For FY2025, Pet Valu revised its guidance downward, expecting revenue between CA$1.175 billion ($850M/€840M) and CA$1.185 billion ($858M/€790M).

In 2024, the retailer posted CA$1 billion ($708M/€614M) in revenue. 

The company says this outlook is supported by around 40 new store openings, roughly 2% same-store sales growth and greater wholesale merchandise sales penetration.

It also forecasts a slightly lower adjusted EBITDA of CA$257 million ($186M/€173M) to CA$260 million ($188M/€175M) and adjusted net income per diluted share of CA$1.63 ($1.18/€1.10) to CA$1.66 ($1.20/€1.12).

Despite the more pessimistic forecast, CEO Greg Ramier says the stores are “well set” for the holiday season and are “supported by a robust commercial plan that will thrill pet parents while providing everyday value they can count on.”