Petco's Recent Performance Shows Progress Despite Flat Revenue
Despite a flat year-over-year revenue performance, Petco Health and Wellness (NASDAQ: WOOF) reported improved financial metrics in its second-quarter earnings report. The company saw net income more than double to $38.7 million from $14 million the previous year, while free cash flow rose significantly to $60.8 million for the first half of 2027 compared to just $9.9 million over the same period in 2025. Petco also made progress on its balance sheet by prepaying $170 million in debt, reducing total debt from $1.59 billion a year ago to $1.48 billion as part of an ongoing deleveraging strategy. CEO Joel Anderson noted that the company's turnaround plan is gaining traction and highlighted improvements in consumables sales. Analysts remain divided on Petco’s outlook with a consensus 'Reduce' rating, but the average price target suggests potential for 32% upside from current levels.
Tickers: $WOOF
Topics: debt reduction pet care industry retail stock performance