Pets at Home has reported a mixed set of full-year results in the first reporting period under new CEO, James Bailey, with profits and retail sales falling, but signs emerging that its retail turnaround strategy is beginning to gain traction.

For the 52 weeks to 26 March 2026, group revenue slipped 0.8% to £1.47bn, while pre-tax profit fell more sharply to £86.5m, down around 28%. Retail revenue declined 1% to £1.29bn against a subdued consumer backdrop, although the company said trading improved in the second half as its turnaround measures began to take effect.

The stronger performance continued to come from the vet business, where consumer revenue rose 5% to £688m, supported by strong care plan growth and higher customer spending. Total group consumer revenue increased 1% to £1.98bn.

Pets at Home shares jumped sharply today on the back of its FY26 results — rising 8.52% to £200.97 at 2pm UK time — as investors reacted positively to signs that the retail turnaround is gaining traction.

Bailey, who took over as CEO at the end of March 2026 after five years as managing director of Waitrose, said the business had made “material progress” over the past six months in stabilising the retail operation, improving customer satisfaction and product availability.

“We finished the year with better momentum, delivering in line with our plan,” said Bailey. “While there is more we need to do, progress is being made in all areas.”

The company’s Retail Turnaround Plan, introduced in the third quarter, has focused on product, pricing, execution and cost control. According to the company, the UK's largest pet care business, sales and volume trends improved sequentially through the second half, helped by targeted price investment and operational efficiencies.

Operating costs rose just 1.9% year-on-year, while a previously announced £20m overhead reduction programme has now been completed.

Bailey also said his early weeks in the business had strengthened his confidence in the company’s long-term potential.

“We are the clear leader in the growing UK pet care market with a unique set of highly complementary businesses,” he said. “We have considerable, sustainable competitive advantages including our unrivalled reach through our 460 pet care centres, our sector leading Vet business, our large and loyal customer base and well invested infrastructure.”

The company also pointed to growth opportunities beyond retail and veterinary services, particularly in insurance. Pets at Home confirmed it remains on track to launch its new pet insurance offering in 2026 following FCA approval, targeting what it describes as a £2bn market opportunity.

Looking ahead, Pets at Home said retail sales growth has accelerated further in the early weeks of FY27, with mid-single digit sales growth and improving volumes despite tougher comparisons. The group said it remains comfortable with market expectations for underlying pre-tax profit of around £98m for FY27.

The company expects further profit growth from its vet business, continued rollout of new practices and additional investment in its insurance venture. It also confirmed plans for a £50m share buyback over the next 12 months.

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