Highlights

  • Pets at Home shares have fallen over 51% in five years, yet analysts maintain buy ratings with target prices between 245 GBX and 300 GBX.
  • Vet Group revenue rose 6.7% in H1 FY26, while Retail revenue declined 2.3% against a flat UK market.
  • The company’s FY26 interim dividend remains at 4.7p per share, with a GBP 25m share buyback program already 50% completed.

Pets at Home Group PLC (LSE:PETS) has seen its share price fall more than 51% over the past five years, with a 19.17% decline over the past six months. The share performance is likely to be driven by the company’s FY26 interim results for the 28-week period ending 9 October 2025, which showed mixed performance across its Vet Group and Retail divisions.

Meanwhile, analysts at Jefferies, Panmure Liberum, and Canaccord Genuity remain bullish, issuing buy ratings with targets from 245 GBX to 300 GBX.

Mixed Financial Performance in H1 FY26

Pets at Home reported total Group statutory revenues of GBP 778.3m, down 1.3% year-on-year, with like-for-like revenue declining by the same margin. Group consumer revenue rose slightly by 0.7% to GBP 1.06bn, led by the Vet Group’s 6.7% growth. Vet growth was driven by higher average transaction values and Care Plan uptake, with more than half of clients enrolled.

Retail revenue fell 2.3%, with food sales down 0.3% and accessories declining 5.9%. Q2 retail performance showed improvement over Q1 due to online growth, partially offsetting weaker in-store sales.

Group underlying PBT declined 33.5% to GBP 36.2m, with underlying PBT margins down approximately 220bps to 4.7%. Vet Group underlying PBT rose 8.3% to GBP 44.9m, while Retail underlying PBT dropped 84.1% to GBP 3.5m. Underlying basic EPS fell 32.1% to 5.7p.

Balance Sheet and Cash Flow Update

Pets at Home reported net cash of GBP 49.0m, up from GBP 40.0m in the prior year, with adjusted net debt at GBP 12.0m excluding lease liabilities of GBP 338.0m. Free cash flow increased 2.6% to GBP 34.0m, offsetting reductions in underlying PBT. The company is progressing a GBP 25m share buyback program, 50% complete, part of GBP 150m buybacks over the past four years.

Retail restructuring and cost control measures continue, with operating costs up 1.2% year-on-year, below the FY26 guidance cap of 5%. Capital expenditure is expected to remain around GBP 50m for FY26.

Trading Outlook and Strategic Focus

The company maintained FY26 underlying PBT guidance at GBP 90-100m, citing ongoing softness in UK pet retail and sequential improvement in Q2 Retail. Vet Group trading remains in line with expectations, targeting PBT above GBP 80m for the year.

Online retail continues to generate double-digit growth, while store performance remains challenged. The company expects modest retail growth in H2 FY26 against soft year-ago comparisons. Insurance plans are on track for launch in 2026, with losses expected at GBP 5m. A search for a new CEO is ongoing.

Share Price Performance

As of 13 January, Pets at Home shares were trading at 196.78 GBX, up 0.19% on the day.