Petco has reported an uplift in its margin and profit despite a drop in sales for the third quarter.

The pet supplies retailer saw net sales decrease 3.1 per cent year-on-year to $1.5 billion during the quarter ended November 1. Comparable sales also fell 2.2 per cent during the period.

Meanwhile, gross profit margin expanded approximately 75 basis points to 38.9 per cent, and last year’s net loss of $16 million was replaced by a net income of $9 million.

“Once again, we delivered on Petco’s profitability goals as we continue to execute on our multi-phased transformation,” said Joel Anderson, Petco’s CEO. 

“Rebuilding the base of our economic model has been a priority in 2025. This strengthened base sets the foundation for a return to growth during fiscal 2026.”

For the full year, Petco expects net sales to decrease 2.5-2.8 per cent amid approximately 20 net store closures.

The company currently has more than 1500 locations across the US, Mexico and Puerto Rico.