Petco’s turnaround efforts showed early signs of progress in the first quarter, with CEO Joel Anderson saying the company exceeded its expectations as it continues to roll out its ‘Reach for the Sky’ strategy.

“We were particularly pleased to see the improvement in our consumables business, while our differentiated services business continues to outperform and is a key engine of our growth,” Anderson said.

“This solid start to the year demonstrates the power of our distinct, wholly owned omnichannel ecosystem.”

For the quarter ended May 2, net sales increased 0.2 per cent to $1.5 billion, while comparable sales rose 0.7 per cent.

The pet retailer said the improvement was driven by stronger performance in consumables and continued growth in its services business.

Gross profit increased to $574.4 million, with gross margin rising 21 basis points to 38.4 per cent. Operating income jumped 50.5 per cent to $24.6 million, while operating margin improved to 1.6 per cent.

Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation) increased to $97.3 million from $89.4 million a year earlier.

Despite the operational gains, Petco reported a net loss of $15.1 million, compared with a net loss of $11.7 million in the prior-year period.

The retailer ended the quarter with 1378 stores after closing four locations.

Looking ahead, Anderson said the company remains encouraged by the progress of its strategic initiatives.

“We remain highly confident in our ability to drive consistent, long-term growth,” he said.