Financial Performance - Operating income increased by approximately $41 million[11] - Adjusted EBITDA increased by roughly $30 million[11] - Free Cash Flow generated was about $54 million[11] - Net debt decreased by 4% from $1.46 billion to $1.40 billion[31] - Liquidity increased by 4% from $655 million to $684 million[31] - Q2 2025 Adjusted EBITDA margin was 7.6%, compared to 5.5% in Q2 2024[29, 39] Sales & Outlook - Net sales decreased by 2% year-over-year, from $1.524 billion to $1.489 billion[23, 42] - The company expects net sales to be down low single digits year-over-year for Q3 and full year 2025[34] - Adjusted EBITDA outlook for full year 2025 is $385 million to $395 million[34] - Net store closures are projected to be approximately 25 for the full year 2025[34] Strategic Initiatives - The company is focused on strengthening retail fundamentals, enhancing customer experience, and driving efficiencies[7, 14]

Financial Performance - Q1 2025 adjusted EBITDA increased by $13.8 million to $89.4 million, exceeding expectations[6] - Net sales for Q1 2025 were $1.493 billion, a decrease of 2% year-over-year[18, 39] - The company reaffirmed its 2025 net sales and earnings outlook, including estimated tariff headwinds as of June 5th, 2025[8] - Net debt decreased by 2% year-over-year, from $1.50 billion to $1.46 billion[24] - Liquidity increased by 5% year-over-year, from $617 million to $648 million[24] Sales by Category - Consumables net sales decreased by 2% year-over-year[19, 39] - Supplies and Companion Animal net sales decreased by 4% year-over-year[19, 39] - Services and Other net sales continued to deliver positive growth, increasing by 1% year-over-year[19, 39] Guidance - Q2 2025 net sales are expected to be down low single digits year-over-year[26] - Q2 2025 adjusted EBITDA is projected to be between $92 million and $94 million[26] - Full year 2025 adjusted EBITDA is expected to be between $375 million and $390 million[26]