Pets at Home reports 1% revenue growth while profit declines in FY26

British pet retailer Pets at Home reported a 1% year-over-year (YoY) increase in total group consumer revenue, reaching £1.98 billion ($2.7B/€2.3B) in its preliminary fiscal year (FY) 2026 results for the period ended 26 March 2026.

Group underlying profit before tax (PBT) fell 30.2% YoY to £92.8 million ($125M/€108M), despite improvements across both the retail and vet segments during the second half (H2) of the fiscal year.

Retail sales fall

The retail consumer segment generated £1.3 billion ($1.7B/€1.5B), accounting for 65% of total revenue despite a 1% YoY decline. The segment’s underlying PBT declined 57.8% YoY to £30.8 million ($42M/€36M), reflecting operating leverage pressures.

The weaker environment was partially offset by the company’s Retail Turnaround Plan, which helped drive stronger momentum in H2, delivering positive sales and faster volume growth, the company says.

Within the segment, food sales remained flat at £805 million ($1.1B/€940M), while the company’s own-brand sales increased 3% during the period.

Consumable accessories sales declined 1.6% YoY to £171.5 million ($230M/€198M), following a weaker flea and worm season, while discretionary accessories sales dropped 3.5%. 

Vet revenue increase

The vet group’s revenue rose 5% YoY to £688.1 million ($929M/€803M), supported by strong growth in Care Plan sign-ups and higher average transaction values. Underlying PBT in the segment increased 10.4% YoY to £83.8 million ($113M/€98M).

Within the segment, joint venture consumer revenue grew 6.3% YoY to £619.8 million ($837M/€724M), while joint venture statutory revenue increased 4.9% YoY to £108.4 million ($146M/€127M).

Company-managed practice revenue declined 3% YoY to £51.1 million ($69M/€60M), with the company operating 4 fewer locations following conversions of company-managed clinics to joint-venture practices. 

As of the end of FY2026, Pets at Home had 407 joint venture veterinary practices, while its pet care center network totaled 460 stores.

In addition, The Vet Connection, the company’s telehealth business, generated revenue of £3.8 million ($5.1M/€4.4M), down 3.5% YoY.

Retail turnaround plan

The company launched its Retail Turnaround Plan in the third quarter. The strategic initiative aims to improve the performance and profitability of its retail operations through measures such as cost optimization, store portfolio reviews, operational efficiencies and an enhanced customer experience.

The initiative improved sequential sales and volume growth through H2, delivering £93 million ($125M/€108M) in PBT during the period, alongside 3.7% food volume growth in Q4.

The company says it increased retail satisfaction by 4 points, driven particularly by improvements in value for money, product availability and promotional clarity.

Subscriptions

Subscription consumer revenue increased to 15.2%, up from 13% in the previous year, supported by strong growth in Care Plans. The company reports more than 50% of vet clients are now enrolled in a plan.

Active Pets Club membership stood at 7.4 million. Total retail transactions declined 1%, but returned to growth in H2, alongside improved customer recruitment, with Puppy & Kitten registrations averaging 15,000 per week.

Insurance business

This year, the retailer is launching a branded insurance business to complement its existing retail and veterinary operations.

According to the company, the segment is advancing following approval from the Financial Conduct Authority (FCA). The retailer is now expanding workforce capacity and building the required technology infrastructure.

So far, it has invested £5.2 million ($7M/€6.1M) in the venture and expects to incur slightly higher costs in FY2027.

Yearly guidance

For FY2027, Pets at Home expects low-single-digit sales growth in the vet segment, alongside higher costs related to the rollout of its new practice management system. The retailer also plans to accelerate veterinary expansion through additional practice rollouts and the expansion of existing practices.

In retail, underlying market growth is expected to be between 1% and 2%. Meanwhile, capital expenditures are expected to reach approximately £50 million ($67M/€58M), with the largest portion allocated to maintaining the company’s store estate.

Pets at Home states that the guidance does not reflect any specific impacts related to geopolitical uncertainty in the Middle East.