Pets at Home closes Q3 with “below expectation” retail growth

Pets at Home has closed its Q3 for FY 2024 having brought in £362.4 million ($459.5M/€424.1M) in revenue, indicating a 4.3% increase in group revenue compared to Q3 last year, where the company earned £347.5 million ($440.6M/€406.5M).

There was a continued strong performance by the retailer’s veterinary group, which saw it increase its Q3 revenue by 13.4%. This segment witnessed a strong quarter due to the “addition of new vet talent, sustained growth in average spending and a shift to advanced procedures.”

Retail also grew this quarter by 3.5% on a year-over-year (YoY) basis—especially in volume growth and share gains across food—however, the numbers fell short of expectations as the “discretionary accessories trends” did not take off.

Lyssa McGowan, Chief Executive Officer, commented that despite the slowdown in sales growth, the company is “well positioned to benefit from long-term growth.”

In Q3, higher spending ability among their customers and an increase in VIP members to 7.7 million pushed Q3 consumer revenue growth by 6% on a YoY basis and 15.4% on a 2-year basis. 

Focus on accessories in 2024

Pets at Home’s primary focus for the year is spotlighting accessories. The upcoming launch of a new digital platform is expected to be “a key foundation of its growth strategy,” enhancing consumer experience and platform functionality and creating opportunities to improve the sale of pet accessories. 

In Q3, Pets at Home integrated premium ranges from Lords & Labradors, Cocopup and Pawsome Paws Boutique to stretch its “brand appeal.”

The company also plans to introduce a raw pet food range from Butternut Box soon.

Long-term plans include expanding veterinary capabilities through the company’s third “physical clinical academy hub”—currently in progress—and a property management system partnership with Provet, a cloud-based system, to integrate vets into its pet care platform. The latter is expected to roll out starting FY 2025.