Pet Valu Holdings Ltd., a Canadian specialty retailer of pet food and pet-related supplies, announced Tuesday its financial results for the third quarter 2026, as the company opened seven new stores and saw revenue hit close to $300 million.
“We delivered strong third quarter performance, highlighted by positive same-store sales growth and compelling earnings growth in a constrained consumer environment,” said Greg Ramier, Chief Executive Officer of Pet Valu. “These results reflect the appeal of our commercial plan, the disciplined execution of our teams and the unmatched scale of our stores and supply chain network.
“Reflecting the strength of year-to-date performance, we have updated our 2026 Outlook, including improved profit expectations. By focusing on the needs of devoted pet lovers and the elements within our control, we are reinforcing our industry leadership and positioning Pet Valu to drive sustainable, profitable growth in current market conditions.”
Third Quarter Highlights
- Revenue was $299.5 million, up 3.5% versus Q3 2025.
- System-wide sales were $388.6 million, an increase of 3.9% versus Q3 2025. Same-store sales growth was 1.5%.
- Adjusted EBITDA was $66.6 million, up 4.8% versus Q3 2025, representing 22.2% of revenue. Operating income was $43.4 million, up 3.4% versus Q3 2025.
- Adjusted Net Income was $29.8 million or $0.44 per diluted share, compared to $27.6 million or $0.40 per diluted share, respectively, in Q3 2025. Net income was $26.3 million, up 5.8% versus Q3 2025.
- Opened 7 new stores and ended the quarter with 882 stores across the network.
- Free cash flow was $25.2 million, compared to $24.7 million in Q3 2025.
- Subsequent to Q3 2026, the Board of Directors of the Company declared a dividend of $0.13 per common share.
On a 52-week comparable basis, the company said it now expects revenue growth between 2.5% and 3.5%, Adjusted EBITDA margin of approximately 21.5%, and Adjusted Net Income per Diluted Share growth in the low single-digits for 2026.
Pet Valu said the increase in Q3 revenue was primarily due to higher retail sales and franchise and other revenues.
Same-store sales growth was 1.5% in Q3 2026, primarily due to a 1.4% same-store average spend per transaction growth and a 0.1% same-store transaction growth. This is compared to a 2.3% same-store sales growth in Q3 2025, which was primarily driven by a 2.0% same-store average spend per transaction growth and a 0.3% same-store transaction growth, it said.
“Gross profit was $97.2 million in Q3 2026 compared to $95.6 million in Q3 2025, an increase of $1.7 million, or 1.7%. Gross profit margin was 32.5% in Q3 2026 compared to 33.0% in Q3 2025, a decrease of 0.5%. Excluding costs related to the supply chain transformation, gross profit margin was 32.5% in Q3 2026 and 33.5% in Q3 2025, respectively, a decrease of 1.0%. The decrease was primarily due to (i) price investments made in late 2025; (ii) higher fuel costs; (iii) higher occupancy costs; partially offset by (iv) distribution efficiencies from the new distribution centres,” it noted.
The company said it continues to monitor the evolving governmental foreign trade environment and believes it has the appropriate mechanisms in place to adapt, as necessary.
Pet Valu is Canada has over 800 corporate-owned or franchised locations across the country. It offers more than 10,000 products, including a broad assortment of exclusive, holistic and award-winning proprietary brands. The company is headquartered in Markham, Ontario and has distribution centres in Brampton, Surrey, and Calgary.
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