Pets at Home Shares Rise Despite Slight Revenue Decline in Q3

Shares of Pets at Home (LON: PETS) rose more than 3% on Tuesday, despite the company reporting a 0.2% decline in total group revenue for the third quarter of  FY25, coming in at £361.6 million. 

The pet care retailer maintained its full-year profit guidance, easing investor concerns amid a challenging consumer environment.

The company reported that consumer revenue grew by 2.3% to £468 million, driven by a 21.3% surge in revenue within its Vet Group, which achieved like-for-like growth of 19.9%. 

The company noted “high-quality growth,” with strong performances in subscriptions, visits, and average transaction values.

However, the Retail segment faced a 2.4% drop in revenue, with like-for-like sales down 2.8%. 

“Q3 saw a more challenging UK consumer backdrop with particularly weak footfall from October,” said the company.

Digital sales, however, showed resilience, gaining momentum throughout the quarter.

Pets at Home reaffirmed its underlying pre-tax profit guidance for the full year, projecting modest growth despite a “subdued consumer backdrop.” 

The company highlighted strong gross margin performance during the Christmas season and effective cost management.

The company expects to finish FY25 with a robust balance sheet due to continued investment, including £55 million in capital expenditure and £85 million returned to shareholders via dividends and buybacks. 

The retailer is also completing its transition to a new distribution centre in Stafford, incurring £11 million in non-underlying costs for FY25 due to the earlier-than-expected closure of its Northampton facility.

The group concluded the quarter with an 8.2 million-strong Pets Club membership, up 5% year-on-year.