Pet Valu Holdings Ltd., the leading Canadian specialty retailer of pet food and pet-related supplies, announced Tuesday its financial results for the first quarter 2026.
First Quarter Highlights
- System-wide sales were $375.2 million, an increase of 2.5% versus Q1 2025. Same-store sales growth was flat.
- Revenue was $287.9 million, up 3.2% versus Q1 2025.
- Adjusted EBITDA was $55.9 million, down 4.8% versus Q1 2025, representing 19.4% of revenue. Operating income was $34.9 million, down 6.6% versus Q1 2025.
- Adjusted Net Income was $21.6 million or $0.31 per diluted share, compared to $25.4 million or $0.36 per diluted share, respectively, in Q1 2025. Net income was $20.0 million, down 7.9% versus Q1 2025.
- Opened 8 new stores and ended the quarter with 870 stores across the network.
- Free cash flow was $13.1 million, compared to $15.3 million in Q1 2025.
- Subsequent to Q1 2026, the Board of Directors of the Company declared a dividend of $0.13 per common share.
“Our first quarter performance was shaped by heightened value-seeking behaviour, as devoted pet lovers leaned into our compelling programs to capture savings on quality specialty products,” said Greg Ramier, Chief Executive Officer of Pet Valu. “We delivered 3% revenue growth, supported by continued market share gains, making Pet Valu one of the fastest pockets of growth within Canadian pet retail.
“In response to the evolving consumer demand and cost environment, we are adapting to deliver value efficiently, reinvest responsibly, and realize planned savings. Our updated 2026 outlook reflects these actions, providing a new profitability trajectory for the year, while maintaining our industry leadership.”
The increase in revenue was primarily due to higher retail sales and franchise and other revenues, said Pet Valu.
It said gross profit was $90.4 million in Q1 2026 compared to $92.1 million in Q1 2025, a decrease of $1.6 million, or 1.7%. Gross profit margin was 31.4% in Q1 2026 compared to 33.0% in Q1 2025, a decrease of 1.6%. Excluding costs related to the supply chain transformation, gross profit margin was 31.4% in Q1 2026 compared to 33.1% in Q1 2025, a decrease of 1.7%. The decrease was primarily due to (i) higher discount sales penetration; partially offset by (ii) distribution efficiencies from the new distribution centres, it explained.
Pet Valu said Fiscal 2026 will be a 52-week fiscal year, compared to a 53-week fiscal year in Fiscal 2025. Factoring in Q1 2026 performance, together with an evolving consumer demand and cost environment related to higher fuel costs, the Company now expects the following, on a 52-week comparable basis:
- Revenue growth between 2% and 4%, supported by approximately 40 new store openings, flat to 2% same-store sales growth and higher wholesale merchandise sales penetration.
- Adjusted EBITDA margin of approximately 21%, which incorporates heightened value-seeking consumer demand trends and higher fuel costs offset by operating expense leverage.
- Adjusted Net Income per Diluted Share similar to Fiscal 2025.
- Business reinvestment of approximately $35 million, consisting of approximately $20 million in Net Capital Expenditures and approximately $15 million in transformation costs.
Pet Valu is Canada’s leading retailer of pet food and pet-related supplies with over 800 corporate-owned or franchised locations across the country.
More from Retail Insider:
