WOOFNasdaqRetail-Retail Stores, NECUS GAAP · USD

Petco Health & Wellness Company, Inc.

Petco Health & Wellness Company, Inc. is a U.S.-based pet specialty retailer that sells pet products and provides pet care services through a network of stores, digital channels, and fulfillment options. The company also operates veterinary hospitals and clinics, grooming, and training services, with additional locations in Mexico and Chile through a joint venture.

Revenue5,961m USD
−2.5 %y/y
Operating profit (EBIT)120m USD
+1,608.0 %y/y
EBIT margin2.0%
+1.9 ppy/y
Net income9.1m USD
+108.9 %y/y
Free cash flow187m USD
+276.3 %y/y

Fiscal year 2026 · change from previous year

Development 2021–2026

-2,00002,0004,0006,0008,000m USD2021: 4,920 m USD2021: EBIT 194 m USD20212022: 5,807 m USD2022: EBIT 266 m USD20222023: 6,036 m USD2023: EBIT 226 m USD20232024: 6,255 m USD2024: EBIT -1,180 m USD20242025: 6,116 m USD2025: EBIT 7.1 m USD20252026: 5,961 m USD2026: EBIT 120 m USD20265,961120
RevenueOperating profit (EBIT)

Business

Share of revenue
Consumables45 %

Pet food, treats, and nutrition products sold through stores and online.

Supplies and hardgoods25 %

Pet accessories, toys, habitats, and general pet care supplies.

Services10 %

Grooming, training, and other in-store pet care services.

Veterinary care15 %

Full-service hospitals, Vetco clinics, and prescription-related offerings.

Other and digital fulfillment5 %

E-commerce, delivery, BOPUS, curbside pickup, and related revenue streams.

Products

Reported · share of revenue
49.8%33.0%17.2%FY2026100 %
  • Consumables49.8 %
  • Supplies and Companion Animals33.0 %
  • Services and Other17.2 %

Source: 10-K FY2026, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

Petco serves pet parents who buy recurring essentials, premium nutrition, and care services for dogs, cats, and other companion animals. Its customer base spans value-oriented shoppers, premium pet owners, and households that want a single place to manage products, appointments, and veterinary care. The business also benefits from repeat purchasing and multi-channel customers who shop across stores, app, and website.

Pet parents

Households buying food, supplies, and services for companion animals across stores and digital channels.

Multi-channel shoppers

Customers who use Petco stores, app, and website for repeat purchases and appointments.

Veterinary customers

Pet owners using full-service hospitals, Vetco clinics, and prescription-related offerings.

Premium nutrition buyers

Customers seeking higher-end, health-focused, and owned-brand pet food and supplies.

Service customers

Pet owners purchasing grooming and training services in Petco locations.

Strategy

Petco’s strategy centers on combining pet retail with veterinary care, grooming, and training so customers can buy products and services in one ecosystem. The company is also focused on expanding digital commerce, flexible fulfillment, and owned brands to deepen customer loyalty and increase repeat purchasing. Its store base and in-store clinics are designed to support cross-selling and make the business more relevant to recurring pet care needs.

Grow veterinary care footprintMedium term

Veterinary services deepen customer relationships and add recurring, higher-frequency visits.

Expand omnichannel commerceShort term

Digital tools and flexible fulfillment improve convenience and capture more of the pet wallet.

Increase owned-brand penetrationMedium term

Owned brands support differentiation, customer loyalty, and repeat purchasing.

Improve customer acquisition and retentionShort term

The business depends on building multi-channel shoppers and increasing basket size.

Geography

Petco’s core business is concentrated in the United States and Puerto Rico, where it operates most of its pet care centers and digital commerce platform. It also has a meaningful store footprint in Mexico and a small presence in Chile through a joint venture, which extends the brand beyond its U.S. base. Geography matters because the company’s store network, veterinary footprint, and fulfillment model are tied to local consumer demand and operating regulations.

Risks

Petco is exposed to shifts in consumer spending, pet ownership trends, and competition from specialty, mass, grocery, and e-commerce retailers. Its integrated model also depends on store traffic, supply chain execution, and the ability to scale veterinary and service operations without disrupting customer experience. Because the business mixes products, services, and clinics, it also faces execution risk around staffing, inventory, and regulatory requirements.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Decline in consumer spending or changing preferences1Competition across channels2Supply chain and distribution disruption3Macroeconomic and tariff pressure4Veterinary and services execution5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Decline in consumer spending or changing preferencesImpact: HighLikelihood: High

    Petco sells both discretionary and recurring pet products, so demand can soften when households trade down or delay purchases.

    ExposurePet foodSuppliesPremium products
  2. Competition across channelsImpact: HighLikelihood: High

    The company competes with pet specialty, mass merchants, grocery, and e-commerce players on price, convenience, and assortment.

    Exposure: Retail and digital channels

  3. Supply chain and distribution disruptionImpact: HighLikelihood: High

    Store replenishment and e-commerce fulfillment depend on distribution center performance and inventory flow.

    Exposure: Omnichannel fulfillment

  4. Macroeconomic and tariff pressureImpact: MediumLikelihood: High

    Inflation, interest rates, and tariffs can affect customer demand and merchandise costs.

    Exposure: Merchandise sourcing and pricing

  5. Veterinary and services executionImpact: MediumLikelihood: Medium

    Scaling hospitals, clinics, grooming, and training requires trained labor, compliance, and operational consistency.

    Exposure: Veterinary care and services

Ask Clarifo about Petco Health & Wellness Company, Inc.

Accounting

Judgemental items
Inventory reserves

Pet food, supplies, and seasonal merchandise require judgment on markdowns and obsolescence.

Impact: Affects gross margin and inventory carrying value

Derivative instruments

Interest rate caps, collars, and swaps are used to manage variable-rate debt exposure.

Impact: Affects interest expense, fair value, and OCI

Revenue recognition and promotions

Net sales are recorded after discounts, promotions, and loyalty program effects.

Impact: Affects reported revenue and comparable sales

Lease accounting

The store and clinic footprint creates significant lease-related assets and liabilities.

Impact: Affects operating lease expense and balance sheet leverage

Publicly listed companies with a comparable business focus.

Last updated: 24/09/2026