Canadian retailer Pet Valu narrowed its 2026 revenue-growth range and raised profit expectations after higher customer spending helped comparable-store sales rise in the third quarter, despite pressure on margins.
Comparable-store sales increased 1.5% in the 13 weeks ended Oct. 3. Average spending per transaction rose 1.4%, and the number of transactions edged up 0.1%. Revenue reached C$299.5 million, compared with C$289.5 million a year earlier, while systemwide sales grew 3.9% to C$388.6 million.
Net income was C$26.3 million, or C$0.39 per diluted share, up from C$24.9 million, or C$0.36, in the year-earlier quarter. Adjusted net income, a non-IFRS measure, rose 8% to C$29.8 million. Adjusted earnings per diluted share increased 10% to C$0.44 from C$0.40.
Gross margin fell to 32.5% from 33%. Pet Valu said late-2025 pricing investments and higher fuel and occupancy expenses put pressure on the measure, while efficiencies at newer distribution centers provided some relief. The company says adjusted net income, adjusted earnings per share and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) are not standardized under IFRS and may not be comparable with similarly named measures elsewhere.
“We delivered strong third quarter performance,” Pet Valu Chief Executive Officer Greg Ramier said, pointing to same-store sales and earnings growth in a constrained consumer environment.
For fiscal 2026, management kept its revenue-growth forecast midpoint at 3% but tightened the range to 2.5% to 3.5%, from 2% to 4%. The company now expects an adjusted EBITDA margin of about 21.5%, up from about 21%, and low single-digit growth in adjusted net income per diluted share. Its previous forecast called for that per-share measure to be similar to fiscal 2025.
Pet Valu gives its 2026 outlook on a 52-week comparable basis; fiscal 2025 had 53 weeks, while fiscal 2026 has 52. Pet Valu estimates the extra week accounted for about 2% of the prior year’s reported revenue, adjusted EBITDA and adjusted net income. Its current forecast also reflects higher fuel expenses and consumers seeking value, partly balanced by operating expense leverage.
Pet Valu opened seven stores during the quarter and ended it with 882. Its board declared a C$0.13-per-share dividend on Nov. 9. Shareholders of record at the close of business Nov. 30 are due to receive the payment Dec. 15.
