Pets at Home has lowered its profit guidance for the year as it anticipates softer trading amid a more “subdued” retail market.
The pet specialist saw group revenue slide 1.9% to £435m in the 16 weeks to 17 July, with a 6.2% growth in its vet business offsetting a 3% drop in its retail division.
Pets at Home said that given the “subdued retail market growth rates seen to date”, it was revising down its guidance and expects to deliver an underlying pre-tax profit in the range of £110m and £120m.
“Where we end up in our updated range is mostly dependent on the trajectory of retail market growth through the second half of FY26,” it explained.
The retailer said the lower end of its new forecasted profit outlook would imply “a continuation of current subdued market trends through the remainder of the year”.
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Despite the softer sales, Pets at Home said its gross margins had been “resilient to date” with the business remaining price competitive while mitigating the £20m of externally imposed headwinds from changes to National Insurance.
The business saw its digital sales return to “double-digit” growth following disruption from the exit of its Stafford distribution centre.
Subscriptions were also up during the first quarter with “particularly strong growth” in its Easy Repeat plan, which launched in April. Subscriptions now represent 14.5% of consumer revenue.
The pet specialist said it was on track to meet its target of at least 10 openings and 15 extensions in FY26, opening two new practices and completing two extensions in the quarter.
Pets at Home chief executive Lyssa McGowan said: “We are pleased to have seen momentum in our business build through Q1, against a subdued market backdrop and uncertain consumer environment.
“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.”
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