Corrects to remove repeated period from headline

Overview

• U.S. pet retailer's Q1 revenue slightly beat analyst expectations, rising 0.2% yr/yr

• Comparable sales returned to positive growth, up 0.7% yr/yr

• Company reaffirmed full-year 2026 outlook and provided Q2 guidance

Outlook

• Petco reaffirms FY 2026 net sales outlook of flat to up 1.5% y/y

• Company expects FY 2026 adjusted EBITDA of $415 mln to $430 mln

• Petco sees Q2 2026 net sales up about 0.3% y/y, adjusted EBITDA $110 mln to $112 mln

Result Drivers

• CONSUMABLES IMPROVEMENT - Co said improvement in consumables business contributed to Q1 results

• SERVICES OUTPERFORMANCE - Services business continued to outperform and was described as a key growth engine

• OPERATIONAL IMPROVEMENTS - Co said operational and economic improvements are materializing, supporting positive comp sales

Company press release: ID:nPnTRPNxa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Slight Beat*	$1.50 bln	$1.49 bln (9 Analysts)
Q1 Comparable sales GROWTH		0.7%

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 8 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy."

• Wall Street's median 12-month price target for Petco Health and Wellness Company Inc is $3.75, about 26.7% above its June 2 closing price of $2.96

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago

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