New chief executive James Bailey faces his first set of half-year numbers later this month, after a year in which profit fell sharply and retail needed stabilising.

The FTSE 250 company comes into the numbers after a difficult financial year. Revenue for the year ended March 2026 slipped 0.8% to £1.47 billion, from £1.48 billion a year earlier, while pre-tax profit fell 30.2% to £92.8 million from £133 million. The interim results for the same year, released on 26 November 2025, had already shown a sharp drop in profit, driven by underperformance in retail.

Retail recovery the central question

When the annual results were published on 27 May, Mr Bailey said material progress had been made over the preceding six months in stabilising retail, pointing to improved customer satisfaction and better product availability. He described the vet Business as sector-leading and said it had proven growth levers.

His priorities for the 2027 financial year include profitable, volume-led growth in retail, continued expansion in veterinary services and the launch of an insurance offering. He also indicated that a further update would come later in the year, so investors will be listening for greater detail when the half-year figures are published. An Earnings Call following the full-year results reaffirmed guidance for the 2027 financial year and noted early signs of a retail recovery.

The group (LSE:PETS) combines retail stores with a veterinary business, and last year's interim figures showed how heavily weak retail trading can weigh on overall profit, so a sustained improvement in that part of the business is significant for the wider group.

An interesting perspective on Demand came from supplier Cranswick, which said in July that its pet product revenue was well ahead, helped by sales to Pets at Home (LSE:PETS). That comment relates to one supplier and one category, but it is a reminder that the group's sourcing arrangements have a wider impact across the food industry.

Market reaction and broker stance

Brokers have taken a measured view. Berenberg cut its target to 200p from 220p around late May, retaining a hold rating, while BNP Paribas began coverage with a neutral rating and a 205p target around April. The consensus among 11 analysts was described as a buy, with an average price target of 218p.

What the interims need to show

The half-year results are likely to be judged on three points: whether like-for-like retail sales have turned upward, whether the vet business continues to grow at a healthy rate and whether profit has stabilised after last year's decline. Commentary on the planned insurance launch and on further steps to reduce costs would add useful detail to Mr Bailey's strategy.

Any confirmation that the retail stabilisation is translating into profit would mark an important milestone for the new Leadership team.