Pets at Home trims growth outlook after sluggish Q1 retail downturn

Pets at Home posted revenue of £435 million ($555.4M/€514.4M) in the first quarter of its fiscal year (FY) 2025 ending 17 July. 

This marks a 1.9% decline compared to the same period last year, the company says in a trading statement. 

Consumer revenue for the period was £591 million ($754.2M/€698.5M), down 0.4% year-over-year (YoY). Meanwhile, the venue from the retailer’s vet business rose 7.1%, driven by higher average transaction values and an increased number of health plans. 

Retail consumer revenue dropped 3% amid a subdued market backdrop with no growth in the pet retail market.

Pets at Home CEO Lyssa McGowan states that the company registered “momentum” in Q1 against a subdued market backdrop and uncertain consumer environment.

Vet and subscriptions

Revenue for the vet segment rose 6.2% between May and July, reflecting strong consumer revenue growth. Meanwhile, retail revenue declined 3.0% YoY. 

According to the company, the subscription business maintained momentum, contributing 14.5% to consumer revenue. 

“Progress has been made across all 4 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,” McGowan adds.

Outlook

Given the current situation, Pets at Home has adjusted its forecast for market growth to around 1% this year.

The retailer now forecasts underlying profit before tax (PBT) to range between £110 million ($140.3M/€129.9M) and £120 million ($153.1M/€141.6M) for FY2026.

“At our FY25 results, we set our FY26 guidance based around an assumption of 2% growth in the pet retail market. While this scenario assumed improving growth through the year, the market growth rates experienced through Q1 have been below those initial expectations,” says McGowan.

Other guidance was unchanged, and the company expects profits to be in line with those seen in previous years.

Pets at Home’s PBT in FY2024 stood at £132 million ($168.5M/€156.2M).