Pets at Home: Model update and 1Q preview

Research evidence excerpt

Pets at Home: Model update and 1Q preview

Deutsche Bank Group

Deutsche Numis Research

Rating Company Date

Buy Pets at Home 16 June 2026

Europe Reuters Bloomberg Rating Buy

United Kingdom PETSP.L PETS LN Price target (GBX) 230.0 Price at 15 Jun 26 182.4

52-week range 266.8 – 176.4

Retail

Retail - Non Food Valuation & Risks

Model update and 1Q preview

Adam Cochrane

DB View Research Analyst

+44-20-754-17812 We update our model post the FY results and ahead of the 1Q trading statement.

There are no material changes to our FY forecasts. We forecast 1Q Consumer Kane Slutzkin, CFA

revenue growth of 3.4% to £611m with Retail sales +4% to £396m and Vets Research Analyst

consumer revenue +2% to £215m (statutory revenue £56m). Despite the pick-up +44-20-754-54624

in the Retail sales driven by solid volume growth related to the price investments,

Benjamin Yokyong-Zoega the Vet market looks to have remained subdued in the period. Gross margin will Research Analyst

continue to be impacted by the price investment, largely in food, and negative mix +44-20-754-12338

impacts. The pipeline for product innovation should continue to build as the year

progresses. Opex is set to be well managed with the benefit of the £20m of central

cost savings starting to flow through in addition to underlying cost efficiencies.

We would expect no changes to guidance or consensus expectations with the 1Q

results and retain our 230p price target and Buy recommendation.

Key questions

With the FY results the new management team outlined the execution of the new

strategy as the key priority. We see the investment case as ongoing robust

strength in the Vets business combined with a sales and margin recovery in Retail

and a meaningful profit opportunity in the medium term from Insurance. The key