Petco’s sales edged up in the second quarter as the company’s turnaround strategy continued to gain traction.

For the quarter ended August 1, net sales rose 0.5 per cent to $1.5 billion, extending the 0.2 per cent uplift in the first quarter, with comparable sales up 0.6 per cent.

The company said the results reflect a sales disruption from the initial stronger-than-expected points redemption from its membership program relaunch. Prior to the relaunch, sales were trending ahead of our Q2 outlook. 

Operating income increased 11.1 per cent to $47.8 million, and net income soared 176 per cent to $38.7 million, mainly driven by a tariff refund.

CEO Joel Anderson said the second-quarter results highlight that the ‘Reach for the Sky’ turnaround 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.”  

For the full year, the company expects net sales to be flat to up 1.5 per cent amid net store closures of 15-20.