Pets at Home: Retail volumes improving, but margin recovery is the next critical step. FY27 PBT guidance unch'.

Research evidence excerpt

Pets at Home: Retail volumes improving, but margin recovery is the next critical step. FY27 PBT guidance unch'.

Equity Research

UK Mid & Small Cap Leisure/Consumer

27 May 2026

Pets at Home

Retail volumes improving, but

margin recovery is the next critical UK Mid & Small Cap

PETSP.L/PETS LN UNDERWEIGHTstep. FY27 PBT guidance unch'.

UK Mid & Small Cap NEUTRAL

Encouragingly, price cuts/improved availability have driven Leisure/Consumer Price Target GBp 180

Retail volumes sequentially higher. However, FY27 profit Price (26-May-26) GBp 185

bridge suggests limited PBT growth in Retail/Vet Group, with Potential Upside/Downside -2.8% Source: Bloomberg, Barclays Research

main tailwinds to PBT from o/head savings /

efficiencies. Margin recovery in Retail is key for profitable UK Mid & Small Cap Leisure/Consumer

turnaround. Richard Taylor +44 (0)20 3555 2650

richard.e.taylor@barclays.com

Our view: We believe bulls will be encouraged by the turnaround in Retail volumes/LFLs, and Barclays, UK

the slide deck (see slide 12 of this link) illustrates the sequential improvement, including most Sharanya Gajapathy

recently on a 2 year basis. However, slide 26 of the presentation shows how the majority of the +44 0(20) 7773 0188

uplift in FY27 PBT YoY (to consensus FY27 PBT of c£98m) relies more significantly on Group sharanya.gajapathy@barclays.com

overhead savings (that have previously been announced of c£20m), and productivity and Barclays, UK

efficiency initiatives. We believe investors will be encouraged by the top line improvement, but

for a sustainable profitable turnaround, we are keen to see evidence / hear plans from

management of how the improved perceptions on value for money/availability can translate

into more profitable growth.