Pets at Home (LSE:PETS) delivered a positive start to the 2027 financial year, with total consumer revenue increasing 3.9% to £614 million during the 16 weeks ended July 16, 2026. Growth was driven by a 4.9% increase in retail revenue, while the veterinary business recorded 1.9% growth and continued to outperform the wider market.
The company said its Retail Turnaround Plan is generating encouraging results through market share gains, improved product ranges in key food and treats categories, and higher customer satisfaction. Subscription revenue also continued to grow, with average customer spending increasing during the period. Pets at Home maintained its full-year guidance and confirmed that its £50 million share buyback programme remains on track.
Retail Strategy Continues to Gain Momentum
The retail business benefited from ongoing investment in stores, stronger operational execution and healthy volume growth across core product categories. Although the number of active Pets Club members declined to 7.0 million, management said the reduction reflected changes to membership reporting introduced previously rather than weaker customer retention.
The company believes its investment programme is creating a stronger and more resilient business, positioning the retail division for sustained growth as year-on-year comparisons become more balanced during the remainder of the financial year.
Focus on Long-Term Growth
Management said continued investment across both the retail and veterinary businesses is improving convenience, customer value and overall service quality. The combination of stronger retail execution and consistent veterinary performance is expected to support long-term profitable growth while strengthening the company’s competitive position in the UK pet care market.
Investment Outlook
Pets at Home continues to benefit from a solid balance sheet, healthy free cash flow and positive share price momentum. Its attractive dividend yield and moderate valuation also support the investment case. However, investors remain mindful of the revenue decline reported during the previous financial year, pressure on profit margins over recent years and softer cash flow trends, which continue to temper the company’s otherwise positive outlook.
About Pets at Home
Pets at Home Group Plc (LSE:PETS) is the UK’s largest specialist pet care retailer, offering pet products, veterinary services and grooming through a nationwide network of around 460 pet care centres. Many of its retail locations include integrated veterinary practices and grooming salons, providing customers with a broad range of pet care services under one roof.
The group also operates one of the UK’s largest small-animal veterinary networks, with more than 450 general practices located in both standalone sites and in-store locations. Its strategy focuses on combining retail, healthcare and subscription services to build long-term customer relationships and drive sustainable growth.
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