Strong demand for live reptiles and reptile food boosts Petco’s Q2 numbers

American pet retailer Petco posted $1.5 billion (€1.32B) in net sales for the second quarter (Q2) of fiscal year (FY) 2026, reflecting a marginal increase of 0.05% year-over-year (YoY).

Comparable sales grew 0.6%, marking the company’s second consecutive quarter of positive growth.

The consumables segment contributed nearly half (49%) of total net sales, followed by supplies and companion animals at 33%. The remaining 18% came from services.

Petco ended the quarter with 1,377 stores nationwide after closing 1 location.

Companion animals gain momentum

CEO Joel Anderson told investors that between April and June, the companion animals segment saw particular strength in live reptiles, which fueled gains in reptile food and supplies.

“Companion animal is a highly differentiated category where our physical store provides a distinct competitive advantage that uniquely sets us apart from online-only and big-box peers while diversifying our animal exposure,” he said.

Beyond driving top-line growth, Anderson added that companion animals are at the center of Petco’s experiential merchandising strategy. “They allow us to engage customers during important cultural moments like the World Cup,” he added.

According to the company, strong performance was supported by a significant number of new SKUs from well-known brands, particularly in cat treats. This trend benefited the launch of Cat Candy Shop, its private-label cat treat brand.

“We also continue to see growth in the ‘gardening with your pets’ category, driven by potted houseplants and pet-friendly garden seeds,” Anderson said.

Profitability

Petco’s net income surged 176% to $38.7 million (€34.1M). Gross profit grew 0.9% to $591.1 million (€520.2M), with a gross margin of 39.7%, up 37 basis points (bps), supported by tariff refunds.

Operating income increased 11.1% to $47.8 million (€42.1M), while adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) stood at $122.2 million (€107.5M), compared with $113.9 million (€100.2M) a year earlier.

According to the company, the results included a net benefit of $6.8 million (€6.0M) related to tariff refunds.

For the first half of the year, net sales remained flat at $2.9 billion (€2.55B). Gross profit was also flat at $1.1 billion (€968M), while net income increased tenfold to $23.5 million (€20.7M).

Guidance

Petco reaffirmed its full-year guidance, expecting net sales ranging from flat to 1.5% growth and adjusted EBITDA of $415 million (€365.2M) to $430 million (€378.4M).

Meanwhile, for the third quarter, net sales growth is expected to be between 0.4% and 1%, while adjusted EBITDA is expected to reach $100 million (€88M) to $103 million (€90.6M). Petco also expects to close 15 to 20 stores during the period.