Pets at Home Navigates Market Headwinds and Maintains FY26 Profit Outlook, Shares Gain

Pets at Home Group Plc (PETS) shares moved around 1.7% higher on Wednesday morning after it released its Q3 FY26 trading statement, revealing a mixed performance picture.

While the pet care specialist reaffirmed its FY26 underlying profit before tax (PBT) guidance, aligning with current consensus estimates of £93 million (range: £90-97m), revenue figures presented a nuanced story of growth and contraction.

Group consumer revenue edged up by a modest 0.8% to £472 million. This growth was primarily fueled by a strong showing in the Vet Group, which saw consumer revenue increase by 5.0%. Retail consumer revenue, however, experienced a slight dip of 1.1%, although the company highlighted positive volume growth in food and accessories categories.

The total Group statutory revenue declined by 1.0% to £358 million, with Group like-for-like (LFL) revenue down 0.7%. The firm noted that Q3 retail transactions were broadly flat, considered a more reliable indicator of customer health than Pet Club memberships, which decreased by 6.9% to 7.6 million due to methodological changes.

Despite the drop in Pet Club members, average consumer value increased by 9.4% to £193, suggesting that while the membership base has shrunk, the remaining members are spending more. Consumer satisfaction in the retail segment has also improved, with a 3-point increase compared to Q3 last year, driven by enhanced value for money, colleague service, and product availability.

Subscription sales continue to be a bright spot, representing 15.0% of consumer revenues, up from 12.1% in the previous year. Approximately 5% of Pets Club members now subscribe to the Easy Repeat service, while over 50% of Vet clients have a Care Plan, demonstrating the growing importance of recurring revenue streams.

The company's vet expansion plans remain on track, with 10 new practices and 15 vet extensions scheduled for delivery in FY26. This expansion underscores the company's commitment to its veterinary services segment, which continues to be a key growth driver.

Ian Burke, Interim Executive Chair, commented, “Our dedicated pet care colleagues and veterinary partners helped us to deliver a solid Q3 performance, which will enable us to achieve an FY26 underlying PBT outcome in line with consensus expectations.” Burke also noted sequential improvement in Retail, as the company continues to implement its Retail Turnaround Plan, including price reductions on over 1,000 products.

Key Performance Indicators

• Active Pets Club Members: 7.6 million (down 6.9% year-over-year)
• Average Consumer Value: £193 (up 9.4% year-over-year)
• Subscription Revenue: 15.0% of consumer revenue (up 24.1% year-over-year)
• Clinical FTE Headcount: 3.6k (up 3.3% year-over-year)