UK's Pets at Home adjusted pretax profit slightly beats estimates
UK's Pets at Home adjusted pretax profit slightly beats estimates
Overview
UK pet care retailer's fiscal 2026 statutory revenue declined 0.8%
Adjusted pretax profit for the year slightly beat analyst expectations
Company announced a £50 mln share buyback
Outlook
Pets at Home is comfortable with FY27 group underlying PBT consensus of £98m
Company expects Retail to outperform underlying market growth of 1-2% in FY27
Company expects Vet Group sales growth of low single digit and profit growth in FY27
Result Drivers
RETAIL TURNAROUND PLAN - Co said price reductions, new product launches, and focus on execution drove improved sales and volume momentum in H2, though full-year Retail revenue declined
VET GROUP GROWTH - Vet Group revenue rose 5.0%, supported by strong Care Plan sign-ups, higher average transaction values, and expansion of practices
GROSS MARGIN PRESSURE - Group gross margin fell by about 120bps, mainly due to Retail price investments and lower Retail margins, partly offset by higher Vet margins
Company press release: ID:nRSa7786Fa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Gross Margin |
| 45.70% |
|
FY Adjusted Pretax Profit | Slight Beat* | GBP 92.80 mln | GBP 92.67 mln (10 Analysts) |
FY Pretax Profit |
| GBP 86.50 mln |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 3 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy."
Wall Street's median 12-month price target for Pets at Home Group PLC is GBp205.00, about 10.7% above its May 26 closing price of GBp185.20
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 13 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)