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flag Petco reports Q2 sales dip but raises full-year earnings outlook amid lawsuit allegations.

flag Petco Health and Wellness Company reported a 2.3% decline in net sales for Q2 2025, but saw an improved operating income and a raised full-year earnings outlook. flag The company's gross profit margin expanded to 39.3%, and it increased its adjusted EBITDA by $30 million to $114 million. flag However, a class action lawsuit alleges that Petco misled investors about its business model and pandemic-related growth, with investors having until August 29, 2025, to join the case.

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