Pets at Home (LSE:PETS) delivered a broadly stable third-quarter performance for the 12 weeks to 1 January 2026, with group consumer revenue rising 0.8% to £472 million. Growth was led by a 5% increase in the Vet Group, which helped offset softer conditions in retail, where consumer revenue slipped 1.1% despite positive volume trends in food and accessories and low-teens growth in online sales.
On a statutory basis, group revenue declined 1.0% to £358 million, while like-for-like sales fell 0.7%. Management said trading was in line with expectations and reiterated guidance that underlying profit before tax for FY26 should be consistent with current market consensus. The group continues to execute its retail turnaround strategy, which is centred on improving price competitiveness, refining product ranges, controlling costs and sharpening in-store execution. Initiatives underway include price reductions across more than 1,000 products, continued expansion of veterinary capacity and further growth in subscription-based services. Higher-margin subscriptions now represent around 15% of total consumer sales, providing a more resilient and predictable revenue stream.
From an investment perspective, Pets at Home benefits from solid underlying financial performance and an attractive valuation profile, supported by a high dividend yield. Ongoing share buybacks add to shareholder returns. These positives are balanced by ongoing challenges in the retail division and the lingering impact of a recent profit warning, which remain key risks to monitor.
More about Pets at Home
Pets at Home Group Plc is the UK’s leading pet care retailer, providing advice, products and veterinary services to pet owners through more than 450 pet care centres and a comprehensive online platform. Many locations include veterinary practices and grooming salons, while the group also operates a nationwide small-animal veterinary network of over 450 general practices across both in-store and standalone sites.
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