Pets at Home’s revenue remained flat at £1.5bn in the 2025 financial year, as its underlying profit before tax reached expectations, increasing by 0.7% to £133m.

In the 52 weeks to 27 March, the pet goods retailer saw its group consumer revenue jump by 2.7% to £1.96bn, while it also announced record sales in its vet group revenue, which increased by 13% in this period.

However, its retail consumer revenue fell by 1.8% after a "period of subdued growth" in the sector, it said, due to a soft UK consumer backdrop, deflation and normalising levels of new pet ownership.

This was evident in its group like-for-like revenue results, which dropped by 0.4% year-on-year.

Despite this, Pets at Home saw its number of Pets Club members increase by 5% to 8.2 million, while its subscription revenues jumped by 30%.

Chief executive officer at Pets at Home, Lyssa McGowan, said the past two years had seen a "profound transformation" for the firm, as it moved towards being a "true pet care platform".

She added: "During this period of transformation, we have completely replatformed our digital infrastructure, built new capabilities around our data, brand & marketing, and simplified our distribution network to a single distribution centre fulfilling stores, online and subscriptions, and we have achieved this against the backdrop of a normalising pet care market and low consumer confidence.

"In FY25, we also saw another outstanding year of growth in our vets business, fuelled by the commitment and expertise of our partners, supported by our best-in-class scale services, platform benefits and industry knowhow. Our practices significantly outperformed a more subdued industry backdrop and delivered this progress despite the ongoing uncertainty of the CMA investigation - further demonstration of the power of our unique joint venture model."

In its outlook for the 2026 financial year, Pets at Home said its aim is to "deliver outperformance" versus the market in the vets and retail sectors.

Furthermore, it added that the first six weeks of the year have begun as expected, although its profit before tax is set to drop to between £115m and £125m in the current financial year.

The announcement comes as the retailer announced a £25m share buyback scheme for the 2026 financial year, having already completed £125m in buybacks in the past three years.

Head of equity research at Hargreaves Lansdown, Derren Nathan, concluded: "The retail outlook remains subdued. Pets at Home expects to outperform market growth of 2% but with costs rising by up to 5% due to various bits of unhelpful legislation, profits are likely to fall. The vets outlook looks stronger with over 10 new openings planned this year and the group looking relatively well insulated from the likely findings of the Competition and Markets Authority industry-wide probe.

"Despite the challenges, the cash keeps flowing, supporting a 5% yield and giving the company confidence to launch a further £25mn buyback. But in the near term the scope for capital appreciation might be limited after a strong run for the shares."

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