Pets at Home lowers FY guidance amid subdued market growth

Pets at Home has lowered its FY26 guidance after a subdued first quarter saw a fall in retail revenues, as the group reported there was no growth in the pet retail market over the period. 

In the quarter ended 17 July 2025, group revenues fell by 1.9% year-on-year to £435m, with like-for-like (LFL) sales also down 1.9%. 

While consumer revenues rose by 0.4% to £591m, retail revenues fell 3.0%, mirroring a 3.0% drop in retail LFL sales. According to Pets at Home, this performance improved through the quarter as it completed its transition of online sales to its Stafford distribution centre, which boosted the performance of its digital platform. 

Meanwhile, its vet group performance remained “strong” in the quarter, with consumer revenues up 7.1%, driven by higher average transaction values and more customers on Care Plans. 

Overall vet revenues rose by 6.2%, with LFL growth of 8%, supported by ongoing conversions of company-owned practices to joint ventures. Consumer revenue in the vet division is also 40% higher than three years ago.

In its latest update, the group noted it had previously set its FY26 guidance based on an assumption of 2% growth in the pet retail market. While this scenario “assumed improving growth through the year”, it said the Q1 market growth rates were below these initial expectations, and it now expects market growth to now be around 1%.

In light of this, it updated its forecast for underlying profit before tax to between £110m and £120m, though other guidance remains unchanged. 

Despite the cut to market growth expectations, Pets at Home stated that the veterinary business “continues to perform strongly” and is on track for further progress in the current financial year.

The company added it remains on track to meet its 2026 target of at least 10 new veterinary practice openings and 15 extensions. In the quarter, it opened two practices and completed two extensions, while welcoming 42 new practice owners.

CEO Lyssa McGowan said: “We are pleased to have seen momentum in our business build through Q1, against a subdued market backdrop and uncertain consumer environment. Progress has been made across all four of our strategic metrics in the quarter, including growing our subscription revenues by over 40%, growing Pets Club members, increasing average spend and continuing to grow our vet talent as we continue building the world’s best pet care platform.

“As ever it is our people, and their unrivalled expertise, that continue to drive our business. I would like to thank our colleagues and vet partners for their ongoing passion and dedication to creating a better world for pets and the people that love them.”