Petco Stock Skyrockets in 2025: Forecasts Adjusted Profits Up to $390M Amid Sales Dip

Essential Highlights

• Petco's stock soared in early 2024 after announcing a stronger-than-expected adjusted earnings outlook for fiscal 2025.
• While overall sales are projected to decrease slightly in 2025, adjusted EBITDA is forecasted to rise significantly beyond analyst predictions.
• CEO Joel Anderson revealed that foundational business practices required a complete overhaul to align with successful consumer business standards.

In 2024, Petco (WOOF) experienced a remarkable surge in stock value after unveiling an encouraging adjusted profit forecast for fiscal year 2025.

Despite anticipating a modest decline in sales by low single digits, Petco expects adjusted EBITDA to increase to a range of $375 million to $390 million, up from $336.5 million in 2024. This surpasses analyst estimates of $371.6 million, as reported by Visible Alpha.

Further strengthening its market position, Petco announced a new collaboration making its pet supplies available through Uber Eats' retail platform, expanding customer reach.

Following the announcement, Petco shares surged 30% shortly after market opening, rebounding from a 35% decline since early 2025.

CEO Emphasizes Overhaul for Sustainable Success

CEO Joel Anderson highlighted the necessity of revamping Petco’s core operations after assuming leadership in summer 2023. He noted that the company’s previous foundational practices were not aligned with those of a thriving consumer business and required significant restructuring.

Anderson emphasized the discerning nature of Petco’s customer base and detailed plans to optimize the product portfolio by prioritizing faster-selling brands and enhancing profit margins through targeted promotions.

For the quarter ending February 1, Petco reported $1.55 billion in sales, slightly below estimates, with comparable store sales growth of 0.5%, just under analyst expectations. The company posted a net loss of $0.05 per share, marginally wider than predicted.

Petco’s positive outlook follows strong earnings results from online competitor Chewy (CHWY), which exceeded expectations in the same period.

Update: This article includes the latest stock price developments and details on Petco's partnership with Uber Eats.

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