WOOF

Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) reported second-quarter 2026 net sales of $1.49 billion, up 0.05%, while comparable sales increased 0.6%. Company-defined non-GAAP adjusted EBITDA reached $122.2 million, compared with $113.9 million one year earlier. Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) calculates adjusted EBITDA from net income attributable to common stockholders, adding net interest, taxes, depreciation and amortization, equity-based compensation, losses on debt extinguishment and modification, 50% of Mexico joint venture EBITDA and specified other costs, while deducting income from equity-method investees. The reported result included a $6.8 million net benefit from the International Emergency Economic Powers Act, or IEEPA, tariff refunds after investments to reposition assortments and partially offset fuel and tariff expenses. Excluding that benefit, normalized adjusted EBITDA was $115.4 million, only $1.5 million, or approximately 1.3%, above the prior-year result. Gross margin increased 37 basis points to 39.7%, but was approximately flat year over year without the refund benefit. Year-to-date operating cash flow increased to $130.6 million from $70.4 million. Company-defined free cash flow, calculated as operating cash flow less cash paid for fixed assets, increased to $60.8 million from $9.9 million. The year-to-date calculation reflects $130.6 million of operating cash flow less $69.8 million paid for fixed assets. Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) ended the quarter with $293.5 million of cash, up from $188.7 million one year earlier. Inventory declined 1.1% year over year despite the slight increase in net sales. Total debt declined year over year to $1.48 billion from $1.59 billion, while net debt fell to $1.19 billion from $1.40 billion. After the quarter, Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) prepaid another $75 million, bringing voluntary prepayments to $170 million over nine months. The stated leverage target is 2 times, calculated as net debt divided by adjusted EBITDA. The refund accounted for most of the adjusted EBITDA increase. Normalized growth of approximately 1.3% remains modest, particularly when comparable sales increased only 0.6%. Based on reported figures, product sales declined 0.7%, while services and other sales increased 3.6%. Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) reaffirmed full-year net sales guidance of flat to 1.5% growth and adjusted EBITDA guidance of $415 million to $430 million. That adjusted EBITDA range includes the $6.8 million refund, while the outlook assumes no additional IEEPA refunds during the rest of the year. The forward measure lacked a GAAP reconciliation because future adjustments could not be predicted without unreasonable efforts. Debt remains substantial. The $170 million of prepayments spans nine months and exceeds $60.8 million of first-half free cash flow, so the figures do not establish that current-year free cash flow funded the entire amount. Based on the quarter-end balance, total debt would remain approximately $1.40 billion after the subsequent $75 million prepayment, before other changes. Fiscal 2026 guidance includes approximately $122 million of net interest expense. Competition, discretionary-demand pressure, and planned net closures of 15 to 20 stores constrain the recovery. The filings available so far reflect positions held before Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) reported second-quarter 2026 results. Insider Monkey’s database showed 22 hedge funds holding Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) at the end of 2Q2026, unchanged from three months earlier. Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) is generating cash and reducing debt, supporting the self-funding case. However, the tariff refund magnified adjusted EBITDA and gross-margin improvement, while refund-excluded EBITDA growth and comparable sales remained limited. Sustained free cash flow, stronger refund-excluded EBITDA growth, and further debt repayment are needed to establish durability. While we acknowledge the potential of WOOF as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: Main Street Capital’s (MAIN) Blowout Exit Fuels A Bigger Dividend and Here is Why Chevron (CVX) is a Favorite Among Hedge Funds This article is originally published at Insider Monkey.

Image source: The Motley Fool. Wednesday, Sept. 2, 2026 at 4:15 p.m. ET Vice President of Investor Relations and Treasury - Roxanne Meyer Chief Executive Officer - Joel Anderson Chief Financial Officer - Sabrina Simmons Operator: Thank you. Good day, and welcome to Petco's Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Roxanne Meyer, Vice President of Investor Relations and Treasury. Please go ahead. Roxanne Meyer: Good afternoon, and welcome to Petco's Second Quarter Fiscal 2026 Earnings Conference Call. Joining me on the call today are Joel Anderson, Petco's Chief Executive Officer; and Sabrina Simmons, Petco's Chief Financial Officer. In addition to the earnings release, we've posted a slide presentation on our website at ir.petco.com. I'd like to remind everyone that on this call, we will make certain forward-looking statements which are subject to a number of risks and uncertainties that could cause actual results to differ materially from such statements. These risks and uncertainties include those set out in our earnings materials and SEC filings. In addition, on today's call, we will refer to certain non-GAAP financial measures. Reconciliations of these measures can be found in our earnings release, presentation and SEC filings. With that, I'll turn the call over to Joel. Joel Anderson: Thank you, Roxanne, and good afternoon, everyone. Thank you for joining us to discuss our second quarter results. Our focus this quarter was on accelerating progress across our Phase 3 Reach for the Sky strategy. The team successfully gained traction across all 4 of our strategic pillars, and we delivered solid profitability relative to our financial outlook. For the quarter, we delivered positive comps for the second quarter in a row. Sales were $1.5 billion, and adjusted EBITDA was $122 million, which included a net tariff refund of $6.8 million. As noted in our earnings release today, we voluntarily prepaid an additional $75 million in debt on September 1, given our solid results, healthy cash generation, and importantly, our confidence as we head into the second half, which Sabrina will discuss shortly. Before reviewing our second quarter accomplishments and strategic initiatives, I want to spend a few moments on our top-line results. During the quarter, we hit a major milestone in our Phase 3 strategy by relaunching our customer membership program, Petco Perks. This relaunch made point redemption significantly easier for our members, removing the friction that limited their prior engagement. As I noted last quarter, this change was exceptionally well received in our pilot. Following the national rollout in late January, customer point redemption volumes far exceeded our initial projections. While this demonstrated incredible customer engagement, it also had a negative impact on our Q2 net sales, particularly in our services business. To give you some context of our underlying momentum, prior to the nationwide membership rollout, our sales and comp run rates were ahead of our Q2 outlook. We acted swiftly to deploy post-launch guardrails on redemption velocity, [ with ] peak redemptions now behind us. With a clear path for progress, we can now focus on unlocking the program's most powerful component over the coming quarters: personalization and loyalty. We expect our new membership program to serve as a key catalyst that supports our long-term growth, and we are encouraged by early personalized offer tests. The balance of the year will be focused on these capabilities, and we expect a positive impact to emerge in 2027. Now turning to our initiatives. At the half-year mark, we are holding true to our commitments. We are successfully adding newness and innovation, improving our digital capabilities, investing in our vet hospitals and connecting services to the center of the store. I'm pleased to report that our core strategies are gaining traction. In addition to our ongoing strength in services, the underlying health of our business is also visible in consumables, where we saw positive growth. Today, I'll focus on two areas. First, our commitment to newness and anticipating trends is actively fueling our growth engine. And second, we are beginning to demonstrate the unique power of the ecosystem we've built. First, on newness, that continues to be a standout growth category. We remain ahead of the curve by looking far beyond basic nutrition to serve cat parents. Recent industry data shows kitten-owning households surpass puppy households starting in spring 2026. This demographic shift creates a massive opportunity for us to capture market share by serving these cat parents holistically across consumables, supplies, vet care and in grooming products. In the second quarter, we introduced new high-impact brands that resonate strongly with cat parents, generating nice gains across consumables, supplements, bedding and furniture. A key highlight was cat treats. Strong performance was powered by a significant number of new SKUs with high brand awareness. We also launched our private label, Candy Shop, for cat treats. Not only was it a huge success, but it demonstrated the opportunity behind our owned brands. As we look ahead, we are optimistic about the possibilities to grow our share in the cat category and expect momentum to only build in the second half, which I will elaborate on shortly. In addition, companion animal is a highly differentiated category, where a physical store provides a distinct competitive advantage. It uniquely sets us apart from online-only and big box peers while diversifying our animal exposure. In the second quarter, we saw particular strength in live reptiles, which in turn fueled gains in reptile food and supplies. We also continue to see growth in the Gardening with Your Pets category, driven by potted houseplants and pet-friendly garden seeds. Beyond driving top-line growth, companion animals are at the center of our experiential merchandising strategy. They allow us to engage customers during important cultural moments like the World Cup. An example of this is the Piggy Cup we held in the majority of our stores in July, featuring guinea pigs competing in soccer matches. This is a perfect bridge to the second area I want to highlight: the power of our fully integrated omnichannel ecosystem. As a reminder, our multichannel customers, meaning those that shop us online, in stores and utilize our services, generate a 5x higher NSPAC than single-channel customers. Consequently, we are laser-focused on initiatives that deepen these multichannel relationships across our ecosystems. First, I'm pleased to share that we have officially rolled out our Autoship sign-up capabilities across our physical store locations. It's been amazing to me as I traveled stores, how few of our regular customers were aware of our ability to provide this service to them. Just the rebranding alone has made a meaningful improvement in awareness. Online, Autoship is already a successful and sticky business, where it accounts for roughly half of our digital sales. These digital customers typically spend 2x to 3x more than non-Autoship customers. While we are still in the very early innings of this deployment, bringing this capability into stores represents a massive long-term opportunity for us to grow NSPAC with our large population of infrequent store shoppers. We look forward to leveraging it to encourage behaviors like BOPUS and unlocking Autoship for grooming customers who don't use Petco for their daily food needs. Ultimately, this should strengthen the most predictable, recurring parts of our business, support our future growth while making it easier for our customers to interact with Petco. This is simply another example of how we are leveraging the many differentiating attributes only Petco is delivering. Next, our veterinary business continues to deliver strong results. In the second quarter, our hospital sales productivity continued to improve. This was highlighted by double-digit growth in total pet visits. We've also expanded doctor days by double digits to better meet demand. Bottom line, we're growing pet visits, including dogs, in an environment where adoptions are down industry-wide. A reminder, our wholly owned vet hospital model is a key differentiator versus peers and is scaled at approximately 300 locations. Because we own these hospitals, our strategic priorities are aligned between our hospitals and the center of our store. Unlike our peers, our veterinarians and store partners are all Petco employees. They're increasingly working together to serve our pet parents holistically and are focused on maximizing the productivity of the entire box. As a reminder, last quarter, I shared with you that we expect to begin to open additional vet hospitals in 2027. This initiative remains on track, and I look forward to discussing the growth opportunity with you more on the Q3 earnings call. Our vet diet business perfectly illustrates these ecosystem synergies. By leveraging our in-store vets to recommend prescription nutrition, we are uniquely positioned to capture a larger share of wallet. In the second quarter, vet diet sales for both dogs and cats grew double digits versus last year. It's a great example of the many cross-shop opportunities available to Petco. We've better utilized the ecosystem of services, product and digital. Now let's talk about how we're evolving the ecosystem even further. We're applying deep insights about our core customer, Passionate Explorer, to elevate our in-store experience and drive traffic. Since I joined, the leadership team and I have been testing a new store prototype. After several iterations, we have landed on a format that better resonates with our customers. In May, we launched this new store format across a 7-store market test. Built on increased discovery, enjoyment and store associate expertise, this format is designed to strengthen customer connectivity and trust. We've introduced several enhanced features to these locations, with the goal of delivering a best-in-class retail environment for our customers. Some of the enhancements include interactive companion animal habitats that encourage exploration, Petco exclusive brand collaborations and several impulse buying opportunities. From a service perspective, we invested in dedicated front-of-store labor and integrated consultative nutrition advice directly into our grooming salons. These results thus far are highly encouraging. We are seeing a sizable lift in both new and reactivated customers, higher transaction counts and larger basket sizes, driving strong comp sales. We are also seeing a lift to margins. These improved metrics are backed by exceptional customer feedback. It aligns with the lift we are seeing in our Net Promoter Score, which improved by hundreds of basis points nearly overnight. We will continue to validate these test results through the balance of the year as we expedite a few more remodels ahead of identifying the stores that would benefit from this layout beginning in 2027. In my opinion, we have not been the best custodians of the physical part of our brand. I'm committed to fixing that, and this recent market makeover has given all of us on the management team a true shot in the arm as we commit to regaining lost market share. It is also a great example of how we are investing in the long-term health of the Petco brand. The Petco brand is strong and really resonates when we deliver an amazing environment. Looking ahead, I'd like to discuss where we see outsized opportunity for the second half and the third quarter in particular. First, we expect to sustain our momentum in fresh and frozen. Historically, this category has been dominated by natural brands, with mixed adoption from the vet community. We are thrilled to partner with Hill's Pet Nutrition and their entry into the fresh dog food category with their Q3 launch of Science Diet Single Protein Dog Food Rolls. We expect to complete our rollout by year end, yet another example of newness and being on trend. We are adding in-store chillers across the majority of our locations to support this premium offering. As veterinarian-backed fresh food begins to take off, this partnership serves as a powerful, incremental growth lever. Advantageously, our integrated model allows our veterinarians to recommend the science-backed nutrition while we capture the purchase in the middle of our store and expand our share of wallet. Second, turning to our inventory investments. As our merchandising initiatives roll out gradually and build throughout the year, we expect inventory to increasingly reflect a higher mix, optimized, go-forward product. This should support an improving sales trend in the back half. Towards the end of the second quarter, we invested a portion of our tariff refund to support the acceleration of our merchandising strategy. As a result, we expect to exit Q3 with increased newness in our go-forward assortment compared to Q2. This transition includes ramp of our owned brand offerings in supplies. Third, looking at the supplies category specifically, we expect progress in Q3, driven by a stronger in-stock position compared to last year and our work to address assortment gaps. We're accelerating owned brand innovation across both dog and cat products. This month, we're excited to introduce fresh assortments in bedding and cleanup. Additionally, we are leaning into expanding the travel category with new carriers, strollers and backpacks. Overall, we expect a pace of newness in supplies to build throughout Q3 and the second half. And fourth, we are maximizing the power of our physical footprint through retailtainment events that highly appeal to our Passionate Explorer. These in-store activations tap into seasonal milestones and local community moments, differentiate Petco, bring excitement to our sales floor and build lasting connections with pet parents and their pets. In Q3, we have an exciting lineup. In early August, we partnered with Hill's for their National Clear the Shelters adoption drive, which serves as a powerful funnel to acquire new pet parents as customers. And later in August, we offered a free pumpkin spice latte pup cup in our stores, timed with the seasonal return of the human version at Starbucks. September brings Catco Month, a dedicated celebration of cats featuring exclusive product launches, 3 consecutive Meow Market food tasting weekends and bringing back Find Mews hide-and-seek activity for kids. Looking ahead to October, we will host Halloween photo opportunities and even a costume party. All of these events are a benefit to store traffic and provide an in-store selling opportunity for our associates. In summary, we expect initiatives such as the Hill's Science Diet rollout leaning into cat, increased inventory in our go-forward strategy, newness in supplies, including owned brands, community building retailtainment events and stores to serve as key drivers will help fuel sales in Q3 and beyond. Petco is truly beginning to play offense again, yet we're doing so with discipline. So while the sales ramp may be measured, [ facts ] will be there to ensure the growth is sustainable and will build in 2027 and beyond. Separately, I also want to highlight the appointment of Jeffrey Naylor to the Petco Board of Directors last month and as Chair of the Audit Committee. Many of you know him from his time as the Chief Financial Officer of TJX Companies. I'm confident his financial acumen further strengthen our economic model and help create long-term value for shareholders. Jeff is another example of the number of great retail leaders joining because they believe in the Petco brand and the future in front of us. In conclusion, we are continuing to make progress on our Reach for the Sky strategy and are focused on driving the business forward. The initial friction related to the peak point redemption from our membership relaunch is behind us. Our operational core is strong. Our green shoots of success are building. And our ongoing catalysts for the back half, combined with the investments we are making in our growth, give us confidence in our reiterated outlook. I want to express my deep appreciation to the entire Petco team for their disciplined execution and unwavering dedication to the pets and pet parents we serve. I especially want to give a big shout out to our many partners in the stores. They have been passionate about the changes and have executed with relentless energy as we have pivoted to find success. Your commitment to our core customer is amazing, and I thank you personally for making a difference in the lives of millions of pets and their pet parents. With that, I'll turn the call over to Sabrina to take you through the financial details. Sabrina Simmons: Thank you, Joel. Good afternoon, everyone. During the second quarter, despite the membership launch learning Joel touched on, we're pleased to deliver another quarter of positive comps and deliver on our bottom line commitments as we execute on our economic model. Looking ahead, we remain focused on achieving our full year sales and adjusted EBITDA guidance. Turning to second quarter results. Net sales were up slightly to last year at $1.5 billion. Importantly, Q2 marked our second consecutive quarter of positive comps with a 0.6% comp, underscoring that our initiatives across our 4 growth pillars are beginning to take hold. During the quarter, we had 1 net store closure, and we ended the quarter with 1,377 stores in the U.S. Moving on to margin results. Second quarter gross profit dollars were $591 million, while our gross margin rate expanded 37 basis points to 39.7%. This includes a benefit of $6.8 million in net tariff refunds. Without this net tariff refund, our Q2 normalized gross margin rate was about flat compared to the prior year. We were particularly pleased with the results given we were comping against our peak quarterly gross margin performance in Q2 last year. Regarding tariffs, as a reminder, our owned brand imports represent only about 5% of our total cost of sales. We received substantially all anticipated tariff refunds in the second quarter. We reinvested a portion of the refund to propel the repositioning of our new assortments for future growth by more aggressively moving through legacy inventory. Additionally, a small amount served to offset incremental fuel and tariff costs in Q2. The remaining $6.8 million net benefit, which was all recognized in Q2 gross margin as mentioned, will help provide flexibility to both potentially invest in our business for growth as well as offset some continuing headwinds in supply chain in the second half. Moving on to expenses. For the quarter, SG&A was $543 million, or 36.5% of net sales. Despite lapping last year's approximate $9 million benefit in SG&A from an actuarial true-up, expenses were only up $1 million versus the prior year, proving as evidence of our expense discipline. For Q2, our operating profit was $48 million, or 3.2% of net sales, versus $43 million, or 2.9% of net sales last year. Our adjusted EBITDA, which includes the incremental net tariff refund of $6.8 million, was $122 million, or 8.2% of net sales. We're pleased that our normalized adjusted EBITDA without the net tariff refund landed above last year and above our outlook at $115 million. Moving on to the balance sheet and cash flow. Second quarter ending inventory was down 1% year over year on top of a 9.5% decline last year, reflecting our ongoing discipline and execution. Free cash flow increased $51 million year to date, and we ended the quarter with a cash balance of $293 million, an increase of over $100 million versus the second quarter last year. Total liquidity for the second quarter was $781 million, up nearly $100 million versus the prior year. At quarter end, total debt was $1.48 billion, down $113 million compared to Q2 last year. Importantly, we remain laser-focused on our goal of reducing our leverage ratio to 2x. Underscoring that commitment, given our strong year-to-date cash generation, coupled with our confidence in the second half, we announced today an additional voluntary debt repayment of $75 million, which will be reflected on our third quarter balance sheet. With this repayment, total paydown over the last 9 months equates to $170 million. And now, turning to our outlook. We are committed to remaining agile and delivering on our financial commitments this year as we balance navigating a choppy external environment alongside investing responsibly behind our growth step strategies. As such, we are pleased to affirm our full-year sales and adjusted EBITDA outlook. Specifically, we continue to expect net sales of flat to up 1.5% compared to last year as the impact from our growth initiatives continues to build in the second half. We continue to expect adjusted EBITDA to be between $415 million and $430 million. Given our solid profit performance in the first half of the year, our outlook provides us the flexibility to continue investing behind our growth initiatives in the second half while also absorbing some ongoing supply chain headwinds. Moving on to the third quarter. We expect sales growth of 0.4% to 1% year over year. We expect adjusted EBITDA to be between $100 million and $103 million. With regards to other line items, we now expect net interest expense to be about $122 million, down from $125 million, given we're now incorporating our $75 million debt repayment; depreciation and amortization, about $200 million; capital expenditures of about $140 million with an ongoing focus on ROIC; net store closures between 15 and 20. In closing, I want to thank our teams for their dedication and discipline in executing our strategic initiatives. Q2 marks our seventh consecutive quarter of delivering on our profitability and cash flow goals, allowing us to significantly bring down our overall leverage. We look forward to continuing on this improving trajectory. We will now open up the call for your questions. Operator: [Operator Instructions] The first question today comes from Michael Lasser with UBS. Michael Lasser: Obviously, there's been a lot of work done by Petco in the last year and a half or so. Are you seeing evidence that the customer count is inflecting? And to what degree is getting to the next phase of the transformation dependent on seeing this inflection in customers? Because you can only sell so much to your existing customer base. Joel Anderson: Yes. Hey, thanks, Michael. Look, we actually did see that inflection in Q2 of our total customer base actually growing slightly. So that's, call it, a good start to having reached the bottom and start to grow from there. As the part of your second part of the question, the only area I'd probably correct you a little bit is, I think what I've discovered more than anything in the last, let's call it, 6 months especially, is even without customer growth, we see an incredible opportunity to do a better job of migrating our customers across all 3 pieces of our business, meaning digital, stores and services. And we have a number of customers that use Petco infrequently. And so the opportunity to grow their NSPAC we think is a really big opportunity for us. So that, combined with the customer count starting to grow, are two big inflection points we've uncovered here in 2026. Michael Lasser: Understood. Thank you very much for that. My follow-up question is, can you size the impact from the points transition? And you mentioned that you believe it's behind you, but how will the changing economics of your most loyal customer base impact the remainder of the year and really into 2027? Sabrina Simmons: Hey Michael, it's Sabrina. In terms of size of impact, I think you could back into the ballpark. So what we've said is that we feel very confident that prior to the launch of the membership program, we were tracking to above our outlook, which was about 0.3%. We just reported sales about flat, slightly up, about flat. So if you do that math, that delta gets you to kind of a mid-single-digit millions of impact. Joel Anderson: Yes. And then as for the customer, you know, just a reminder for everybody, getting our membership program launched, we really had to remove a lot of friction, both for our customers and for our associates. That, we noticed in the pilot, and that also proved true in the national rollout. So really pleased with that, Michael. And now we really turn to the big benefits of a membership program, that's loyalty and personalized offers. So excited to move to that phase next. And that will really help maintain and grow our most important customers. Thanks, Michael. Operator: The next question comes from Kate McShane with Goldman Sachs. Katharine McShane: We wanted to first ask about just what you're seeing with regards to the pricing and promotions. Obviously, there's been quite a few companies that have reported talking about taking tariff refunds and using it to invest in price not just this quarter, but into the back half. How should we think about you competing against this for the rest of the year? Joel Anderson: Yes, thanks, Kate. Yes, we've seen that as well. But I would tell you, as far as it relates to the pet space, it's an area we're constantly evaluating the pricing in the market. And, you know, while price is important, it's not the only lever for Petco. We must remain price-competitive, but we also have an experience ecosystem that really drives the differentiation. That's why we've been leaning in on differentiated product and newness, in-store events. Our services is differentiated, companion animal opportunity to grow that. So as it relates to price, it's been relatively stable so far, but it is something we watch every week. Katharine McShane: Okay, and then our second question is just about the 7 stores you mentioned. What is the ultimate strategy there? Is it going forward, whatever stores you open will be more of this newer concept, or will we expect some remodels in this new format that you've seen comp lift and margin improvement? Joel Anderson: I was having a little trouble hearing you, but I think you're asking about what's the strategy with the new store, with the remodel. So, clearly, we're still in the very early innings of that. It's something we've been working on for a while. While we're really pleased with the initial results, we've got to keep testing that to make sure that we are not getting any false positives or false negatives. Specifically, we are fast-forwarding a couple more remodels this year so that we get some more tests out there. We are going to open a couple new stores this year with the new format. And so I think as we continue to move forward and gain more confidence in the early results, this will be the format you'll see from us going forward. And it'll certainly be in some of the new stores later this year. Sabrina Simmons: And what I would add to that is what's exciting is we're going to find learnings from these remodels that we can apply to our fleet. It doesn't have to be full remodels across the board, but I think there's going to be some good learnings of what works for our customers, what's driving their satisfaction. And some of these changes can be low-capital, no-capital decisions we make based on the learnings. Operator: The next question comes from Kaumil Gajrawala with Jefferies. Kaumil Gajrawala: I guess, a couple of things to dig into. Sabrina, I think you gave some -- at least the first question, which was on these new store remodels/openings. No change to the CapEx guidance, this is just -- some of it is either low capital required or it's just not big enough yet. Is that the right way to think about it? Sabrina Simmons: Well, we're juggling some projects. So we have a little bit of fallout, and we're adding a little bit, Kaumil. So more to come if we need to do any revisions, but all of it would be very marginal if we were doing that. Joel Anderson: And certainly no change for '26. Kaumil Gajrawala: Got it. Okay, useful. And then, I think it's interesting to sort of revisit this the strategy on the vet clinics or the animal hospitals. You sort of mentioned, you know, there was a time where you throttled -- intentionally throttled back. It was the right thing to do at that time. Now it looks like maybe the pendulum is swinging the other way. Does the P&L look the same as it did where it was, you know, 3 years, maybe 5 sometimes before break-even and you had to manage the vintages of these things? Or are you maybe operating it in a different way or the improvement in the store conditions suggests that the general trajectory of profitability for these changes is earlier than it used to be? Joel Anderson: Yes, I mean, obviously, as I said in my prepared remarks, we're still on track to start to open new hospitals in '27. I take that as a sign that we continue to make progress in the productivity of our hospitals. And especially the existing fleet, which gives us confidence that as we open hospitals in 2027, that we've got an improved profile on profitability. Having said that, we no longer break out the hospital separately, and that's because we really have to look at the impact on the box overall. And that's the area I'm probably most pleased on, the ecosystem that happens when we add a hospital to an existing store. They really work hand-in-hand together, and that progress we're making is continuing to prove out to be positive. Sabrina Simmons: Yes. And just to underscore what Joel said, we're definitely focused on shortening maturity curves, especially in the newer vintages of the vet hospitals. And so we're applying all those learnings to all go-forward vet hospitals. So there too, there's a lot of good, continuous improvement. Operator: The next question comes from Peter Benedict with Baird. Peter Benedict: First one around kind of the cat business, good to hear the momentum there. Can you maybe frame up the share of what cat represents, percentage of your consumables or supplies? Any perspective on kind of where that is versus history? Just trying to get a sense for kind of what's possible in terms of the cat impact. Joel Anderson: Yes, I mean, for competitive reasons, I don't know that I want to go that low, Peter. But having said that, I would say to you, take the cat growth in a couple of ways. One, it's just a great example of how we have gotten so much better about being on trend and chasing long-term demographic shifts. And so this is an area that was -- been growing for a while. I gave you several examples in my prepared remarks of across all of cat, how we're really driving the business. And so seeing it continue to grow shows that we were on the right trend, and I feel really good about the progress we're making with cat. And what we are seeing is that we are growing above the market overall, and pleased to continue to see the growth in cat. Peter Benedict: That's helpful, Joel. And then I guess related to that, maybe on the dog front, I mean, do you feel like the dog business is stabilized? Is it getting worse? Is it getting better? Just kind of peel back the onion there, what you're seeing in the dog business? Joel Anderson: Yes, I mean, look, the dog business is still soft. Adoptions are down slightly. I think the forecast for it that we look at many different sources see that starting to rebound in 2027. But I think it just shows for you why it's so important to be diversified. And with us having great trends in cat, really growing companion animal, our services business is growing. You know, we've got a lot of diversification to not rely solely on dog. But I will tell you, the newness we're bringing in is resonating with the customer, and we feel really good that we're positioned when the macro side of it changes. And I've said many times, self-help year for Petco. And we are continuing to fix our dog business, and we'll be ready to grow even faster when the market turns around. Peter Benedict: Understood. Thanks for the perspective. Good luck. Operator: The next question comes from Steven Zaccone with Citi. Please go ahead. Steven Zaccone: I wanted to drill down on the category performance. Joel, maybe, could you help us understand how consumables, sounds like it's positive, but just how that performed relative to expectation? And then as we think about the second half of the year, are there differences in what's driving the comp in the consumables versus supplies and services? Joel Anderson: Well, I mean, look. We've been working really hard, and we've really been focused on consumables. It is our largest piece of the business. And I think getting consumables to a positive comp is a great sign of the hard work starting to pay off. It also shows you that the strategy is working. And consumables is a foot -- is the traffic driver for us. And so as consumables improves, so will the other parts of the business with it. So really pleased with consumables, and we expect to continue to make more progress with that. And I think I gave you some really good examples of what's coming in the back half of the year. Steven Zaccone: Okay, great. And then Sabrina, question on gross margin. You sound like flat, ex- the tariffs. Like how should we think about puts and takes for the second half of the year? We've heard about higher freight across retail, but like how should we think about puts and takes on gross margin in the second half? Sabrina Simmons: You know, we are still very focused on delivering healthy margins for the year. There's always some pressures coming in and then some opportunities. So, for example, as Joel's been talking about and we've discussed all year long, we are still focused on making improvements in our owned brands. That started out a little slower than we thought, but it's gaining momentum now. We've had some really great wins with relaunching brands like So Phresh. And as you guys all know, those private label brands carry with them very nice margins. So we have quite a few levers that we're focused on as we march forward, but the overarching goal is that for the full year, we deliver healthy margins. Steven Zaccone: Okay, understood. Best of luck on the back half. Operator: The next question comes from Oliver Wintermantel with Evercore ISI. Oliver Wintermantel: You called out absorbing ongoing supply chain headwinds in the second half. Can you maybe give us a little bit more details on that, maybe a dollar or basis point number on what it is? Is it freight, tariff cost, or is it labor cost? A little bit more detail would be helpful. Sabrina Simmons: Yes, I would put this in the category of kind of normal, manageable headwind. So versus the beginning of the year, the only reason I'm calling it out -- and this is a well-known fact, not anything specific to Petco. But versus the beginning of the year, when there was no Middle East conflict, of course, there's pressure on things like fuel, et cetera, in particular. So again, I don't want to -- I definitely want to put it in perspective that we feel like, sure, there are some headwinds, but it's under the camp of manageable. And really, what we're excited about is that we've delivered nice profitability in the first half. So now as we enter the second half, while reaffirming our full year adjusted EBITDA guide, we have kind of earned the right to have the flexibility to both absorb and offset some of these headwinds, but most importantly also, look to options to invest in our business. Oliver Wintermantel: Got it. And then just a clarification question. What did you guys mention on the reinvestment in tariffs? Did you say -- was that lowering prices to sell through older inventory? And maybe a second -- just overall environment of pricing and promos? Sabrina Simmons: Yes, on the first part, yes. So, what we took the opportunity to do is to really emphasize, we want to expedite our new strategy and get our new assortments in. So we really took an opportunity to expedite moving through our older legacy inventory, whether that be through more aggressive clearance, whether it be through some write-offs. So that was an important part of the strategy. So as we enter Q2, we have the opportunity to now bring in fresh inventory in line with our new assortment strategy. Operator: The next question comes from Steve Forbes with Guggenheim. Steven Forbes: Joel, you mentioned expectations around capturing a vet-led fresh food sale in the prepared remarks. So, I was curious if you could maybe just give us a high-level commentary on how the cross-selling strategies are evolving here and maybe expectations for them to build into the back half of the year? And then I don't know if you maybe start that by framing up for us today, like what percentage of your customers shop more than 1 segment, digital store or services? And how do you sort of expect that, I guess, penetration to build? Like how rapidly could it evolve here as we look out over the next couple of years? Joel Anderson: Yes. Look, I think the vet-led -- and specifically talking about Hill's Science Diet here. It's an example, Steve, A, of being on trend and being one of the first to market with it. But it's also something that our vets are very excited about as an alternative to an offering that they can, you know, suggest to our customers in. And the fact that our vets are all owned by Petco or Petco employees is just a great example of just the cross-functional nature of veterinary services and center of store. And so we're really pleased that's just starting to roll out here in the next couple weeks. Overall, fresh and frozen are a key business for us. We've been in leader in that for a while. We added freezers in the first half of the year, and now we're adding the chillers to support this. And it's also a customer that shops more frequently. So a lot of options now for our customer, and Petco is really being seen as a place to go and get fresh and frozen. And then, you know, our percent of shoppers that are across all 3 channels is still a very, very small number, Steve. And so the opportunity is huge. The strategy is working. And now we're kind of in that execution phase of Phase 3. We've experimented on a lot of things in the first half. We've gotten traction on several of them. I think the real opportunity is really targeting customers that use this only in 1 of the 3 areas, and getting them the 2 first and then all 3 eventually is the real opportunity. But still a very small piece of our overall customer base, Steve. Steven Forbes: And then maybe just a quick follow-up. I believe e-commerce sales last quarter returned a positive growth maybe, correct me if I'm wrong there. But how did e-commerce perform in the quarter? And maybe just revisit sort of the strategic goals with the digital offering and sort of how you expect it to drive share via that channel going forward? Sabrina Simmons: Yeah, we don't segment report, as you know. But for sure, we're pleased with how the e-com business is performing. Now remember last year, we talked about with you all how that channel had the most cleanup of unprofitable sales. So we're really thrilled to see this year a comeback, but in a very healthy way with strong margins. So, you know, all that hard work is definitely paying off, and we're pleased we're on track there. Operator: The next question comes from Simeon Gutman with Morgan Stanley. Simeon Gutman: It's Simeon. I wanted to ask, stepping back, what's helped stabilize the business? And I know, Joel, it'll be a lot of things. And I wanted to ask within that, the consumables growth, I think flattish. What are you seeing there between traffic and ticket, if you would shine a light directly on that on that business? Sabrina Simmons: Just to chime in really quick, Simeon, that the comp in consumables is positive. Because remember, we have store closures. So, it's an -- it's -- we're really pleased to see that the comp is positive. I think you're probably right that the total sales are flattish. So just wanted to correct that, that's moving in the right direction for us, and we're really pleased. Joel Anderson: Yes, and I think the key things that stabilize a lot of that is, you know, we're just a lot more agile than we were a year ago. We used to do 1 dog reset a year. We used to do 1 cat reset a year. We've been bringing in newness every month. And we've been optimizing the resets to be in stock better, the right brands by store. And so all of those are really the catalyst that contributed to stabilizing consumables and then actually getting it back to growing positive. Simeon Gutman: And then the -- I guess, some of the inflections we've talked about for sales, I know you've teased a couple things for '27, even some stuff for back half of this year, and now there could even be a store format rollout at some point. I guess, if we think about '27 as maybe the top line inflection year, is it first half, back half, Joel? I know it's early to start putting a dart on it. Joel Anderson: Yes, and look, it is too early to put a dart on it, but I would think of it as measured and continuous. And that's really the way we're approaching it. It's not going to be a hockey stick. You know, throughout this call, both prepared remarks and talking, you know, owned brands was behind, but the product's starting to come in. We did some acceleration of legacy inventory so that the newness can come in. The services, all the pillars, Simeon, are -- we're just being really diligent to make sure that the growth is profitable and that it's measured and we'll just see continuous improvement. And then obviously, you know, we'll give you guys a real outline for the year, but I think you'll just continue to see continuous improvement. Operator: The next question comes from Zach Fadem with Wells Fargo. David Lantz: Hi, this is David Lantz speaking for Zach. I guess, first one from me, we know Q2 SG&A includes about a 60 basis point impact from lapping last year's actuarial true-up, but curious if you can talk through the other puts and takes in the quarter and provide any other dynamics that we should be keeping in mind for the second half? Sabrina Simmons: Yes, I would say we are really pleased, as I mentioned in my remarks, David, that we keep providing evidence, hopefully, to you all of our expense discipline. Because despite the fact that actually, marketing was up $2 million, overall, our expenses were only up $1 million. And you're totally right. We were laughing at that benefit of $9 million. So if you exclude that, expenses were actually down about $8 million. And I would just tell you that is across the board, old-fashioned discipline on every line item. There's nothing really stand out about that. David Lantz: Got it. That's helpful. And then, can you talk about, you know, supplies and companion animal declines have been moderating over the last couple quarters. Can you talk about the drivers of that and how to think through expectations for the second half? Joel Anderson: Yes, I mean, look, I think -- just as I got asked several questions about consumables, supplies is an area that we're equally focused on improving. It does take a little bit longer. It's a slower-turning product. A large part of it comes in from overseas. But just like Simeon's question about '27, this is a great example of just continuous improvement. And that moderation has been happening over several quarters, and we expect it to continue. Operator: This concludes our question and answer session. I would like to turn the conference back over to Joel Anderson for any closing remarks. Joel Anderson: Thank you, operator. And thank you, everyone, for joining us for our second quarter call. We look forward to catching up with you with our third quarter call in a few months and the progress that we're continuing to make here at Petco. Have a great afternoon. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Before you buy stock in Petco Health and Wellness, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Petco Health and Wellness wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Petco (WOOF) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved a second consecutive quarter of positive comparable sales, driven by stabilization in consumables and continued strength in the services business. Attributed a temporary Q2 net sales headwind to the national relaunch of the Petco Perks membership program, which saw point redemption volumes far exceed initial projections. Identified a significant demographic shift toward kitten-owning households, prompting a strategic pivot to capture market share through new high-impact cat brands and owned-label treats. Leveraged the 'experiential merchandising' strategy, using companion animals and retailtainment events like the 'Piggy Cup' to drive physical store traffic and customer engagement. Demonstrated the power of the integrated ecosystem where multichannel customers generate a 5x higher value than single-channel customers, leading to the rollout of in-store Autoship capabilities. Reported double-digit growth in vet hospital productivity and pet visits, successfully aligning hospital operations with center-of-store sales through veterinarian-led nutritional recommendations. Validated a new store prototype through a 7-store market test that resulted in higher transaction counts, larger basket sizes, and a significant lift in Net Promoter Scores. Reiterated full-year sales and adjusted EBITDA guidance, assuming that the impact of growth initiatives will continue to build throughout the second half of the year. Expects a positive impact from the membership program's personalization and loyalty capabilities to emerge more fully in 2027 following the stabilization of redemption guardrails. Anticipates a Q3 rollout of Hill's Science Diet fresh dog food to serve as a key growth lever, utilizing in-store chillers to capture vet-recommended premium nutrition sales. Plans to exit Q3 with an optimized inventory mix featuring increased newness and owned-brand innovation in the supplies category to address previous assortment gaps. Maintains a timeline to resume opening new veterinary hospitals in 2027, supported by current improvements in hospital productivity and shortened maturity curves. Recognized a $6.8 million net benefit from tariff refunds in Q2, a portion of which was reinvested to expedite the clearance of legacy inventory. Executed a voluntary $75 million debt prepayment in September, bringing the total 9-month paydown to $170 million as part of a long-term goal to reach a 2x leverage ratio. Acknowledged ongoing supply chain headwinds, including fuel and freight pressures related to Middle East conflicts, which management expects to manage within existing guidance. Noted that while the dog category remains soft due to lower industry-wide adoptions, the company is using diversification into cat and companion animals to offset macro weakness. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed that the total customer base grew slightly in Q2, marking a potential bottoming out of previous declines. Joel Anderson emphasized that even without massive new customer growth, there is a 'huge' opportunity to migrate infrequent store shoppers into digital and service channels. Sabrina Simmons quantified the Q2 sales impact of the high point redemptions as being in the 'mid-single-digit millions' range. The company has now implemented 'post-launch guardrails' on redemption velocity to normalize the program's impact on net sales. The new store format will be applied to a few more remodels and new openings later this year to ensure results are not 'false positives.' Management plans to extract 'low-capital' learnings from the test stores to apply across the broader fleet to improve customer satisfaction without full remodels. Management characterized H2 supply chain headwinds as 'manageable' and noted they have 'earned the right' to invest in growth due to strong H1 profit performance. The company is leaning into private label brands like 'So Phresh' to support healthy margins despite external cost pressures.

This article first appeared on GuruFocus. Net Sales: $1.5 billion, up slightly year over year. Comparable Sales: Positive comps for the second consecutive quarter, up 0.6%. Gross Profit: $591 million, with gross margin rate expanding 37 basis points to 39.7%. Adjusted EBITDA: $122 million, or 8.2% of net sales, including a net tariff refund of $6.8 million. Normalized Adjusted EBITDA: $115 million, excluding the net tariff refund, above last year and outlook. SG&A: $543 million, or 36.5% of net sales. Operating Profit: $48 million, or 3.2% of net sales. Store Count: Ended the quarter with 1,377 stores in the U.S., with one net store closure. Inventory: Down 1% year over year. Free Cash Flow: Increased $51 million year to date. Cash Balance: $293 million at quarter end. Total Debt: $1.48 billion, down $113 million compared to Q2 last year. Vet Diet Sales: Grew double digits year over year for both dogs and cats. Pet Visits: Total pet visits grew double digits in the second quarter. Warning! GuruFocus has detected 6 Warning Signs with WOOF. Is WOOF fairly valued? Test your thesis with our free DCF calculator. Release Date: September 02, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Petco Health and Wellness Co Inc (NASDAQ:WOOF) delivered its second consecutive quarter of positive comparable sales, with a 0.6% comp increase, signaling that its strategic initiatives are gaining traction. The company reported strong profitability, with adjusted EBITDA of $122 million, which exceeded its outlook when excluding the one-time net tariff refund of $6.8 million. Petco Health and Wellness Co Inc (NASDAQ:WOOF) is seeing robust growth in its veterinary services, highlighted by double-digit growth in total pet visits and expansion of doctor days to meet demand. The company's new store format test in seven locations is yielding highly encouraging results, including a sizable lift in new and reactivated customers, higher transaction counts, and larger basket sizes. Petco Health and Wellness Co Inc (NASDAQ:WOOF) is proactively managing its balance sheet, voluntarily prepaying an additional $75 million in debt, bringing total debt reduction to $170 million over the last nine months. The relaunch of the Petco Perks membership program caused a significant negative impact on Q2 net sales, particularly in the services business, due to point redemption volumes far exceeding initial projections. Petco Health and Wellness Co Inc (NASDAQ:WOOF) continues to face a soft dog business environment, with industry-wide adoptions down and no immediate rebound expected until 2027. The company is absorbing ongoing supply chain headwinds, including increased fuel costs and tariff-related pressures, which are expected to continue into the second half of the year. Gross margin, when excluding the one-time net tariff refund, was roughly flat year-over-year, indicating underlying margin pressure despite operational improvements. The company's sales growth outlook remains modest, with Q3 guidance of only 0.4% to 1% year-over-year growth, reflecting a measured and gradual recovery rather than a sharp inflection. Q: Are you seeing evidence that the customer count is inflecting, and to what degree is getting to the next phase of the transformation dependent on seeing this inflection in customers?A: Joel D. Anderson (CEO): We did see that inflection in Q2, with our total customer base actually growing slightly. However, even without customer growth, we see an incredible opportunity to migrate our customers across all three pieces of our businessdigital, stores, and services. Many customers use Petco infrequently, so growing their net sales per active customer (NSPAC) is a significant opportunity. The combination of customer count growth and this cross-selling opportunity are two big inflection points we've uncovered in 2026. Q: How will the changing economics of your most loyal customer base from the points transition impact the remainder of the year and into 2027?A: Sabrina Simmons (CFO): Prior to the launch of the membership program, we were tracking above our outlook of about 0.3%. We just reported sales about flat, so that delta gets you to a mid-single-digit millions impact. Joel D. Anderson (CEO): We had to remove a lot of friction for both customers and associates with the relaunch. Now we are turning to the big benefits of a membership program: loyalty and personalized offers, which will help maintain and grow our most important customers. Q: What are you seeing with regards to pricing and promotions, given other companies are using tariff-free funds to invest in price? How should we think about you competing against this?A: Joel D. Anderson (CEO): While price is important, it's not the only lever for Petco. We must remain price competitive, but we also have an experience ecosystem that drives differentiation. We are leaning into differentiated product, newness, in-store events, and our services. Pricing has been relatively stable so far, but it is something we watch every week. Q: What is the ultimate strategy for the seven new-format stores you mentioned? Will all future stores be this concept, or will we see remodels in this new format?A: Joel D. Anderson (CEO): We are still in the early innings. While we are pleased with the initial results, we must keep testing to avoid false positives or negatives. We are fast-forwarding a couple more remodels this year and will open a couple of new stores with the new format. As we gain more confidence, this will be the format you see from us going forward. Sabrina Simmons (CFO): We will find learnings from these remodels that we can apply to our fleet. It doesn't have to be full remodels across the board; some changes can be low-capital or no-capital decisions based on the learnings. Q: Does the P&L for the new vet hospitals look the same as it did years ago, or are you operating differently to shorten the time to profitability?A: Joel D. Anderson (CEO): We are on track to start opening new hospitals in 2027, which is a sign of continued progress in the productivity of our existing fleet. We no longer break out the hospital separately because we have to look at the impact on the box overall. The ecosystem that happens when we add a hospital to an existing store is the area I'm most pleased with. Sabrina Simmons (CFO): We are definitely focused on shortening maturity curves, especially in the newer vintages of the vet hospitals, and applying those learnings to all go-forward locations. Q: Can you frame up the share of what CAT represents as a percentage of your consumables or supplies, and where that is versus history?A: Joel D. Anderson (CEO): For competitive reasons, I don't want to go that low. However, the CAT growth is a great example of how we have gotten better at being on trend and chasing long-term demographic shifts. We are growing above the market overall and are pleased to continue to see growth in CAT. Q: Do you feel like the dog business has stabilized, or is it getting worse or better?A: Joel D. Anderson (CEO): The dog business is still soft, and adoptions are down slightly, with forecasts suggesting a rebound in 2027. This shows why it's so important to be diversified. With great trends in CAT, growing companion animal, and a growing services business, we have diversification to not rely solely on dogs. The newness we are bringing in is resonating with customers, and we will be ready to grow even faster when the market turns around. Q: How should we think about the puts and takes on gross margin for the second half of the year?A: Sabrina Simmons (CFO): We are still very focused on delivering healthy margins for the year. There are always pressures and opportunities. We are focused on making improvements in our own brands, which started slower than expected but is gaining momentum with wins like the SoFresh relaunch. Private label brands carry very nice margins, so we have quite a few levers we are focused on as we march forward. Q: Can you give more detail on the supply chain headwinds you are absorbing in the second half? Is it freight, tariff costs, or labor?A: Sabrina Simmons (CFO): I would put this in the category of normal, manageable headwinds. Versus the beginning of the year, there is pressure on things like fuel due to the Middle East conflict. We feel these are manageable. We have delivered nice profitability in the first half, so we have earned the right to have the flexibility to both absorb and offset some of these headwinds, but most importantly, look to options to invest in our business. Q: How are the cross-selling strategies evolving, and what percentage of your customers shop more than one segment (digital, store, or services)?A: Joel D. Anderson (CEO): The vet-led fresh food initiative with Hill's Science Diet is an example of being on trend and leveraging our integrated model. Our vets are excited about it, and the fact that they are Petco employees highlights the cross-functional nature of our business. The percentage of shoppers that use all three channels is still a very small number, so the opportunity is huge. The real opportunity is targeting customers that use only one of the three areas and getting them to use two, and eventually all three. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Petco Health and Wellness Company, Inc.? Here are five stocks we like better. Petco reported modest improvement in Q2 fiscal 2026: Sales reached $1.5 billion, comparable sales rose 0.6% for the second consecutive positive quarter, and adjusted EBITDA was $122 million, or $115 million excluding a $6.8 million tariff-refund benefit. The relaunch of Petco Perks created temporary sales pressure, particularly in services, as customers redeemed points faster than expected. Petco said peak redemptions have passed, while its new store format, Autoship expansion, merchandise initiatives and veterinary services showed encouraging results. Petco reaffirmed its full-year outlook for flat to 1.5% sales growth and $415 million to $430 million in adjusted EBITDA. The company is also reducing leverage, with debt down $113 million year over year and a planned $75 million repayment bringing nine-month debt reduction to $170 million. Petco Faces Tough Competition, But Momentum Is Building Petco Health and Wellness (NASDAQ:WOOF) reported second-quarter fiscal 2026 sales of $1.5 billion and adjusted EBITDA of $122 million, as the retailer posted its second consecutive quarter of positive comparable sales and continued efforts to reduce debt. Comparable sales increased 0.6% in the quarter, while net sales were slightly higher than a year earlier, Chief Financial Officer Sabrina Simmons said. The company’s adjusted EBITDA included a $6.8 million net benefit from tariff refunds. Excluding that benefit, adjusted EBITDA was $115 million, which Simmons said was above the prior-year level and the company’s outlook. → AST SpaceMobile Is Down 54%—Can FCC Progress and BlueBirds Reverse the Slide? The Squeeze is on for Petco Stock, Buy it When the Dust Settles Chief Executive Officer Joel Anderson said Petco’s “Reach for the Sky” strategy gained traction across its strategic priorities, including merchandise innovation, digital capabilities, veterinary hospitals and the integration of services with its retail stores. Anderson said Petco’s nationwide relaunch of its Petco Perks membership program in late January made points easier for customers to redeem. The change produced stronger-than-expected redemption activity, but it also reduced second-quarter net sales, particularly in services. → Palo Alto’s Rally Has One Big Problem Ahead of Earnings Will This Pet Retailer's Stock Break Out of the Doghouse? “Prior to the nationwide membership rollout, our sales and comp run rates were ahead of our Q2 outlook,” Anderson said. Simmons told analysts that the effect of the program transition was in the mid-single-digit millions of dollars, based on the difference between Petco’s pre-launch sales trajectory and its reported quarterly results. The company implemented guardrails intended to moderate redemption velocity and said peak redemptions are now behind it. → Securing AI: 5 Most-Upgraded Stocks From the Q2 Reporting Season Petco plans to focus on personalization and loyalty features in coming quarters. Anderson said the company expects a positive impact from those capabilities to emerge in 2027. During the question-and-answer session, Anderson said the company saw its total customer base grow slightly during the second quarter. He also emphasized an opportunity to increase spending among existing shoppers by moving them across Petco’s stores, digital channels and service offerings. Multi-channel shoppers who use online, store and service channels generate five times higher net spend per active customer, or NSPAC, than single-channel customers, Anderson said. However, customers using all three channels remain a small portion of Petco’s overall customer base. Petco said consumables delivered positive comparable sales growth during the quarter. Anderson attributed the improvement in part to more frequent assortment updates, better in-stock levels and tailoring brands to individual stores. Cat products were a particular area of strength, with gains across consumables, supplements, bedding and furniture. Petco introduced new cat brands and launched its Cat Candy Shop private-label treats offering. Anderson said the company is growing faster than the overall market in cat, while the dog business remains soft as pet adoptions are down slightly industry-wide. The company also cited strength in companion animals, especially live reptiles, which helped drive demand for reptile food and supplies. Petco additionally noted growth in pet-oriented gardening products, including potted houseplants and pet-friendly garden seeds. Petco has rolled out Autoship enrollment capabilities across its physical stores. Autoship represents about half of digital sales, Anderson said, and customers using the service typically spend two to three times more than customers who do not use it. The company’s veterinary business continued to improve, with double-digit growth in total pet visits and doctor days during the quarter. Petco operates approximately 300 wholly owned veterinary hospitals. The company expects to begin opening additional hospitals in 2027 and said it is working to shorten the maturity curve for newer hospital locations. Prescription diet sales for dogs and cats both rose by double digits year over year, according to Anderson. Petco also plans to roll out Hill’s Pet Nutrition Science Diet Single Protein dog food rolls during the third quarter, with the broader rollout expected to be completed by year-end. The retailer is adding in-store chillers across most locations to support the fresh-food offering. In May, Petco launched a new store format across a seven-store market test. The format includes interactive companion-animal habitats, exclusive brand collaborations, impulse-purchase opportunities, dedicated front-of-store labor and nutrition advice integrated into grooming salons. Anderson said the test locations have generated a sizable increase in new and reactivated customers, higher transaction counts, larger baskets, stronger comparable sales and improved margins. Petco also saw net promoter scores improve by hundreds of basis points, he said. The company plans to continue testing through the remainder of the year, accelerate several additional remodels and open a couple of new stores using the format. Anderson said the format could become the company’s model going forward if the results continue to hold. Simmons added that Petco expects to identify lower- and no-capital changes from the tests that could be applied more broadly across its fleet. Second-quarter gross profit was $591 million, and gross margin expanded 37 basis points to 39.7%. Without the $6.8 million tariff-refund benefit, normalized gross margin was approximately flat from a year earlier, Simmons said. SG&A expense was $543 million, or 36.5% of sales. Despite lapping an approximately $9 million prior-year benefit from an actuarial true-up, expenses increased by only $1 million from a year earlier. Marketing expense rose $2 million, while the company maintained discipline across other expense categories, Simmons said. Operating profit was $48 million, compared with $43 million a year earlier. Ending inventory declined 1% year over year, following a 9.5% decline in the prior year. Year-to-date free cash flow increased by $51 million. Cash totaled $293 million, up more than $100 million from the prior-year quarter. Total debt was $1.48 billion, down $113 million year over year. Petco announced a voluntary $75 million debt repayment on Sept. 1. With that payment, the company said its total debt reduction over the past nine months will reach $170 million. The company reaffirmed its full-year outlook for net sales ranging from flat to 1.5% growth and adjusted EBITDA of $415 million to $430 million. For the third quarter, Petco expects sales growth of 0.4% to 1% and adjusted EBITDA of $100 million to $103 million. Petco also now expects net interest expense of about $122 million, depreciation and amortization of about $200 million, capital expenditures of about $140 million and net store closures of 15 to 20 for the full year. Petco Health and Wellness Company, Inc (NASDAQ: WOOF) is a leading U.S. pet specialty retailer focused on delivering products, services and solutions that improve the health and well-being of pets. The company operates a network of retail locations that provide high-quality pet food, supplies and accessories, along with a growing digital platform that supports online ordering, subscription delivery and telehealth consultations for pets. In addition to its retail offerings, Petco has built a full suite of in-store and virtual services, including grooming, training, dog daycare and veterinary care. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Petco Health and Wellness Q2 Earnings Call Highlights" was originally published by MarketBeat. 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2nd Consecutive Quarter of Positive Comparable Sales Growth Delivered Q2 Profitability Ahead of Outlook Announces $75 Million Debt Prepayment, Progressing Toward 2x Leverage1Target Reaffirms Fiscal 2026 Outlook SAN DIEGO, Sept. 2, 2026 /PRNewswire/ -- Petco (Nasdaq: WOOF), the retailer "where the pets go" to find everything they need to live their best lives, today reported its second quarter 2026 financial results. Joel Anderson, Chief Executive Officer of Petco, stated, "We delivered stronger than expected profitability in the quarter while achieving our second consecutive quarter of positive comps. We were pleased to see growth in consumables, which highlights that our 'Reach for the Sky' strategy is gaining traction. Looking ahead to the second half, we are positioned to benefit from several growth drivers and are pleased to reaffirm our full-year sales and profitability outlook. We remain confident in our ability to generate sustainable, long-term growth." Q2 2026 Overview In the second quarter of 2026, the Company received substantially all IEEPA tariff refunds related to tariffs paid under IEEPA in 2025 and 2026. All results below include a net benefit of $6.8 million related to such refunds, representing the proceeds net of investments to propel the repositioning of new assortments for future growth, and to a lesser degree, offset incremental fuel and tariff expense in Q2. For the second quarter of 2026 compared to the second quarter of 2025: Net sales of $1.5 billion increased 0.05%; comparable sales increased 0.6%. These results reflect a sales disruption from the initial stronger-than-expected points redemption from our membership program relaunch. Prior to the relaunch, sales were trending ahead of our Q2 outlook. Gross profit increased to $591.1 million; gross margin rate increased 37 basis points to 39.7% of net sales, compared to $585.3 million or 39.3% of net sales last year. Without the net benefit from the tariff refund, normalized gross margin was about flat with the prior year. Operating income increased 11.1% to $47.8 million compared to $43.0 million last year; operating margin increased 32 basis points to 3.2% compared to 2.9% of net sales last year. Net income increased to $38.7 million versus $14.0 million. Adjusted EBITDA2 was $122.2 million versus $113.9 million. Without the net benefit from the tariff refund, normalized adjusted EBITDA was $115.4 million. The Company closed 1 net store, ending the quarter with 1,377 stores. Sabrina Simmons, Chief Financial Officer of Petco, added, "We are pleased to deliver another quarter of positive comps and deliver on our bottom-line commitments as we execute on our economic model. Subsequent to the second quarter, we voluntarily prepaid an additional $75 million in debt, bringing our total prepayments to $170 million in the past nine months. Looking ahead, we are pleased to reaffirm our full-year sales and Adjusted EBITDA outlook, reflecting confidence in our second half strategic initiatives while remaining thoughtful about balancing the dynamic backdrop while investing behind our growth priorities." Q2 2026 Balance Sheet and Cash Flow Ending cash balance grew by $104.8 million to $293.5 million versus $188.7 million last year. Inventory decreased 1.1% year-over-year versus the 0.05% increase in net sales. Cash provided by operating activities year-to-date was $130.6 million compared to $70.4 million last year. Free cash flow2 was $60.8 million year-to-date versus $9.9 million last year. Total debt was $1.48 billion, down from $1.59 billion last year. Subsequent to the second quarter, the Company prepaid $75.0 million in debt, underscoring its commitment to lowering its leverage ratio1 to 2x. 2026 Outlook The Company reaffirmed its full year 2026 net sales and Adjusted EBITDA2 outlook, which includes net IEEPA tariff refunds of $6.8 million, and provided its outlook for the third quarter of 2026. Given the Company's solid profit performance in the first half of the year, the outlook provides the Company the flexibility to continue investing behind its growth initiatives in the second half, while also absorbing ongoing supply chain headwinds. Assumptions in the outlook include that economic conditions, currency rates and the tax and regulatory landscape remain generally consistent, and that current or planned tariffs on imports into the U.S. from China and other countries as of September 2, 2026, will remain at current levels. Additionally, the outlook assumes no additional IEEPA tariff refunds are received for the balance of the year. Full Year 2026 Outlook Third Quarter 2026 Outlook Earnings Conference Call Webcast Information: Management will host an earnings conference call on September 2, 2026 at approximately 4:15 PM Eastern Time to discuss the Company's financial results. A live webcast of the conference call will be available on the Company's Investor Relations page at https://ir.petco.com/news-and-events/events-and-presentations. A replay of the webcast will be available through the same link approximately two hours after the conference call. About Petco: We're proud to be "where the pets go" to find everything they need to live their best lives for more than 60 years — from their favorite meals and toys, to trusted supplies and expert support from people who get it, because we live it. We believe in the universal truths of pet parenthood — the boundless boops, missing slippers, late night zoomies and everything in between. And we're here for it. Every tail wag, every vet visit, every step of the way. We nurture the pet-human bond in the aisles of more than 1,500 Petco stores across the U.S., Mexico and Chile. Customers experience our exclusive selection of pet care products, services, expertise and membership offerings in stores and online at petco.com, and on the Petco app. In 1999, we founded Petco Love. Together, we support thousands of local animal welfare groups nationwide and have helped find homes for over 7 million animals through in-store adoption events. Forward-Looking Statements: This earnings release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, concerning expectations, beliefs, plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements that are not statements of historical fact, including, but not limited to, statements regarding our Q3 and full year 2026 outlook, operational reset of our business, our competitive positioning, profitability, cash generation through our economic model, expense leverage, operating margin expansion, cost action plans and associated cost-savings, our path to sustainable, profitable growth and our expectations regarding tariffs, IEEPA tariff refunds and associated impacts. Such forward-looking statements can generally be identified by the use of forward-looking terms such as "believes," "expects," "may," "intends," "will," "shall," "should," "anticipates," "opportunity," "illustrative," "estimates," "projects", "forecasts" or the negative thereof or other variations thereon or comparable terminology. These statements are only predictions based on our current expectations and projections about future events and reflect our beliefs regarding such future events and do not represent historical facts or statements of current condition. Although Petco believes that the expectations and assumptions reflected in these statements are reasonable, there can be no assurance that these expectations will prove to be correct or that any forward-looking results will occur or be realized. Nothing contained in this earnings release is, or should be relied upon as, a promise or representation or warranty as to any future matter, including any matter in respect of the operations or business or financial condition of Petco. All forward-looking statements are based on current expectations and assumptions about future events that may or may not be correct or necessarily take place and that are by their nature subject to significant uncertainties and contingencies, many of which are outside the control of Petco. Forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results or events to differ materially from the potential results or events discussed in the forward-looking statements, including, without limitation, those identified in this earnings release as well as the following: (i) increased competition (including from multi-channel retailers, mass and grocery retailers, and e-Commerce providers); (ii) reduced consumer demand for our products and/or services; (iii) our reliance on key vendors; (iv) our ability to attract and retain qualified employees; (v) risks arising from statutory, regulatory and/or legal developments; (vi) macroeconomic pressures in the markets in which we operate, including inflation, prevailing interest rates and the impact of tariffs and tariff refunds; (vii) failure to effectively manage our costs; (viii) our reliance on our information technology systems; (ix) our ability to prevent or effectively respond to a data privacy or security breach; (x) our ability to effectively manage or integrate strategic ventures, alliances or acquisitions and realize the anticipated benefits of such transactions; (xi) economic or regulatory developments that might affect our ability to provide attractive promotional financing; (xii) business interruptions and other supply chain issues; (xiii) catastrophic events, political tensions, conflicts and wars (such as the ongoing conflicts in Ukraine and the Middle East), government shutdowns, health crises, and pandemics; (xiv) our ability to maintain positive brand perception and recognition; (xv) product safety and quality concerns; (xvi) changes to labor or employment laws or regulations; (xvii) our ability to effectively manage our real estate portfolio; (xviii) constraints in the capital markets or our vendor credit terms; (xix) changes in our credit ratings; (xx) impairments of the carrying value of our goodwill and other intangible assets; (xxi) our ability to successfully implement our operational adjustments, achieve the expected benefits of our cost action plans and drive improved profitability; (xxii) our ability to deliver sustainable, profitable growth and (xxiii) the other risks, uncertainties and other factors identified under "Risk Factors" in our most recent Annual Report on Form 10-K and elsewhere in Petco's Securities and Exchange Commission filings. The occurrence of any such factors could significantly alter the results set forth in these statements. Petco cautions that the foregoing list of risks, uncertainties and other factors is not complete, and forward-looking statements speak only as of the date they are made. Petco undertakes no duty to update publicly any such forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by applicable law, regulation or other competent legal authority. NON-GAAP FINANCIAL MEASURES The following information provides definitions and reconciliations of the non-GAAP financial measures presented in this earnings release to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP). The Company has provided this non-GAAP financial information, which is not calculated or presented in accordance with GAAP, as information supplemental and in addition to the financial measures presented in this earnings release that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measures presented in this earnings release. The non-GAAP financial measures in this earnings release may differ from similarly titled measures used by other companies. Adjusted EBITDA Adjusted EBITDA is considered a non-GAAP financial measure under the Securities and Exchange Commission's (SEC) rules because it excludes certain amounts included in net income calculated in accordance with GAAP. Management believes that Adjusted EBITDA is a meaningful measure to share with investors because it facilitates comparison of the current period performance with that of the comparable prior period. In addition, Adjusted EBITDA affords investors a view of what management considers to be Petco's core operating performance as well as the ability to make a more informed assessment of such operating performance as compared with that of the prior period. Please see the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2026 filed with the SEC on March 13, 2026 for additional information on Adjusted EBITDA. The table below reflects the calculation of Adjusted EBITDA for the thirteen and twenty-six weeks ended August 1, 2026 compared to the thirteen and twenty-six weeks ended August 2, 2025. Free Cash Flow Free Cash Flow is a non-GAAP financial measure that is calculated as net cash provided by operating activities less cash paid for fixed assets. Management believes that Free Cash Flow, which measures the ability to generate additional cash from business operations, is an important financial measure for use in evaluating the Company's financial performance. The table below reflects the calculation of Free Cash Flow for the thirteen and twenty-six weeks ended August 1, 2026 compared to the thirteen and twenty-six weeks ended August 2, 2025. Net Debt The table below reflects the calculation for net debt as of August 1, 2026 compared to January 31, 2026 and August 2, 2025. View original content to download multimedia:https://www.prnewswire.com/news-releases/petco-reports-second-quarter-2026-results-302867977.html

Deutsche Bank increased Five Below’s price target to $334 from $318 and kept its Buy rating. Evercore ISI raised Petco’s price target to $4 from $3.50 but maintained its In Line rating. Five Below has gained about 30% this year as shoppers seek value, while Petco has fallen 8% due to weaker discretionary spending. Five Below Inc. (FIVE) and Petco Health and Wellness Co. (WOOF) stocks rose premarket on Wednesday as investors responded to fresh Wall Street price target increases ahead of its fiscal second-quarter (Q2) 2026 earnings. Deutsche Bank raised its price target for Five Below while Evercore ISI lifted Petco’s price target. Five Below stock traded over 1% higher in Wednesday’s premarket, while Petco Health stock climbed over 3%. See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox Deutsche Bank analyst Krisztina Katai increased the price target for Five Below to $334 from $318 while maintaining a ‘Buy’ rating. The move suggests the analyst sees 36% additional upside from the discount retailer’s last closing price. Evercore ISI also raised its price target for Petco Health and Wellness to $4 from $3.50. The firm kept its ‘In Line’ rating, signaling a more measured outlook on the pet retailer. The updates put the two retailers in notably different positions. Deutsche Bank remains constructive on Five Below, while Evercore ISI’s unchanged In Line stance indicates that the higher Petco target does not necessarily reflect a stronger bullish view. Five Below has gained about 30% this year, outperforming specialty retail peers including Ulta Beauty (ULTA), Dick's Sporting Goods (DKS) and Williams-Sonoma (WSM) as inflation pressures push more middle- and upper-income consumers toward value retailers. The company’s growth has been fueled by strong sales and earnings, along with its “Five Beyond” concept, which adds merchandise priced above $5 and increases average spending. The retailer is set to report its Q2 results on Sept. 2, with Wall Street expecting revenue of about $1.22 billion and EPS of $1.41, according to Fiscal.A\ai data. Investors will also look for discussion of store expansion, with Five Below targeting more than 3,500 locations, while tariff management and supply-chain improvements remain key to protecting margins. Petco Health and Wellness is down about 8% in 2026 as customers spend less on non-essential pet items and shop more online. Demand for pet food and veterinary care remains steady, but weaker sales of toys, accessories, and premium products have hurt growth. Petco is also working through significant debt and margin pressures while competing with online rival Chewy. Its debt refinancing pushed maturities to 2031, but interest costs remain a concern. Analysts see $1.49 billion in revenue and $0.07 EPS for Q2. On Stocktwits, retail sentiment around FIVE stock improved to ‘bullish’ from ‘neutral’ territory, while sentiment around WOOF stock turned ‘neutral’ from ‘bearish’. FIVE stock has surged 63% in the past year, while WOOF stock has cratered 28%. Also See: PCG, EIX Stocks Head For Worst Week In A Year As They Reel From California Wildfire Reform Setback: BoFA Turns Neutral, Slashes Targets For updates and corrections, email newsroom[at]stocktwits[dot]com Shivani Kumaresan has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits. Related: US Fed Beige Book Shows Data Center Builds Driving Regional Expansion, But Warns Of Rising Cost Pressures US Fed Beige Book Shows Data Center Builds Driving Regional Expansion, But Warns Of Rising Cost Pressures LI Stock Continues To Hover Near 52-Week Low Despite New, Cheaper MPV Launch

Pet-focused retailer Petco (NASDAQ:WOOF) will be announcing earnings results this Wednesday after market hours. Here’s what to expect. Petco beat analysts’ revenue expectations last quarter, reporting revenues of $1.50 billion, flat year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates but EPS in line with analysts’ estimates. Is Petco a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members. This quarter, the market is expecting Petco’s revenue to be flat year on year, improving from the 2.3% decrease it recorded in the same quarter last year. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Petco has missed Wall Street’s revenue estimates multiple times over the last two years. Looking at Petco’s peers in the consumer retail segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Tractor Supply delivered year-on-year revenue growth of 2.3%, missing analysts’ expectations by 1.1%, and Leslie's reported a revenue decline of 8.4%, falling short of estimates by 11.9%. Tractor Supply traded up 5.7% following the results while Leslie's was down 41.7%. Read our full analysis of Tractor Supply’s results here and Leslie’s results here. In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the consumer retail stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.2% on average over the last month. Petco is down 7.9% during the same time and is heading into earnings with an average analyst price target of $3.54 (compared to the current share price of $2.68). WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it. This is what the early days of Palantir looked like before it became a giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.

SAN DIEGO, Aug. 24, 2026 /PRNewswire/ -- Petco (Nasdaq: WOOF), the retailer "where the pets go" to find everything they need to live their best lives, today announced that its financial results for the second quarter fiscal 2026 will be released at approximately 4:00 p.m. Eastern Time on September 2, 2026. The company will host a conference call at approximately 4:15 p.m. Eastern Time to discuss the results. A live webcast of the conference call, as well as the earnings release and earnings presentation, will be available on the company's Investor Relations page at https://ir.petco.com/news-and-events/events-and-presentations. A replay of the webcast will be available through the same link approximately two hours after the conference call. Upcoming Investor Conferences The company also announced that management will participate in the following upcoming investor conferences. Goldman Sachs Global Consumer and Retail Conference 2026 Management will participate in a fireside chat on Monday, September 14th, 2026 at 1:20pm ET. A live webcast of the fireside chat will be available on the company's Investor Relations page at https://ir.petco.com/news-and-events/events-and-presentations. Wells Fargo Consumer Conference 2026 Management will participate in meetings on Tuesday, September 22nd, 2026 and Wednesday, September 23rd, 2026. About Petco: We're proud to be "where the pets go" to find everything they need to live their best lives for more than 60 years — from their favorite meals and toys, to trusted supplies and expert support from people who get it, because we live it. We believe in the universal truths of pet parenthood — the boundless boops, missing slippers, late night zoomies and everything in between. And we're here for it. Every tail wag, every vet visit, every step of the way. We nurture the pet-human bond in the aisles of more than 1,500 Petco stores across the U.S., Mexico and Puerto Rico. Customers experience our exclusive selection of pet care products, services, expertise and membership offerings in stores and online at petco.com, and on the Petco app. In 1999, we founded Petco Love. Together, we support thousands of local animal welfare groups nationwide and have helped find homes for over 7 million animals through in-store adoption events. View original content to download multimedia:https://www.prnewswire.com/news-releases/petco-to-host-second-quarter-2026-earnings-conference-call-on-september-2-2026-and-participate-in-upcoming-investor-conferences-302857815.html