Pets at Home shares rise on retail recovery outlook

Pets at Home expects to deliver results in line with its guidance for the fiscal year (FY) 2026, which ended on 26 March 2026.

The group’s underlying profit before tax (PBT) of £92 million ($121M/€105M) is in line with previous guidance, but represents a 30% decline from £133 million ($176M/€152M) in 2025.

Pets at Home previously set a guidance range of £90 million ($119M/€104M) to £97 million ($128M/€111M), as announced in its Q3 earnings report.

The British pet retailer is scheduled to release its preliminary results for the year on 27 May.

Shares and retail outlook

Following the company’s pre-close statement on 31 March, investor confidence strengthened, supported by improving retail performance and volume growth.

Pets at Home shares closed at £1.81 ($2.34/€2.15) on 31 March, up from £1.76 ($2.28/€2.09) on 27 March. On 1 April, stock rose further to £1.83 ($2.44/€2.09).

The retail segment is expected to generate approximately £30 million ($39M/€36M) in underlying PBT, supported by volume growth in the second half of the year and completed price investments.

In addition, the segment will benefit from £20 million ($26M/€24M) in overhead savings, achieved through reductions in indirect business expenses.

Vet business

The Vet Group division is forecast to deliver around £83 million ($107M/€98M) in PBT, marking another year of profit growth, driven by higher average transaction values and continued expansion of care plan revenues and subscriptions.

The Competition and Markets Authority (CMA) concluded its investigation into the UK veterinary services sector on 24 March.

The final decision introduces legally binding measures, including price transparency requirements, prescription fee caps, a price comparison website and mandatory branding for large groups to boost competition and reduce costs.

Pets at Home welcomed the CMA’s final decision report, noting that it does not expect any adverse impact on the growth strategy or ambitions of its vet group.

Outlook

The company expects to end FY2026 with net debt of approximately £20 million ($26M/€23M), after returning approximately £85 million ($112M/€97M) to shareholders through dividends and buybacks during the year.

While the total amount returned to shareholders will remain unchanged, Pets at Home says it will rebase its dividend to a 50% payout ratio, with the remaining cash redirected to share buybacks.

For FY2027, Pets at Home says it has approximately 80% of its energy and foreign exchange requirements hedged.

Additionally, the retailer notes it is comfortable with current analyst consensus expectations for the group underlying PBT. For FY2027, it stands at £99 million ($132M/€114M), with a range of £90 million ($119M/€104M) to £108 million ($142M/€124M).