Pets at Home chief exits as second profit warning hits shares

Pets at Home Group PLC said chief executive Lyssa McGowan has left the business with immediate effect, as it issued a second profit warning for the current financial year and faced a sharp drop in share price. The stock fell about 23% in early trading, wiping roughly £240 million from the company’s market value.

McGowan, who joined Pets at Home in 2022 and was awarded an OBE in June for services to retail, departed as the group said a search for a permanent chief executive is now underway. Chairman Ian Burke has taken on the role of executive chairman until a successor is named, and the board expressed thanks for her leadership since 2022.

The retailer cut its guidance for the 2025-26 financial year to a profit range of £90 million to £100 million, down from the £110 million to £120 million band it issued earlier. The company said the reduction would mark a sharp drop from the £133 million reported in the prior year. It cited a subdued pet market and weaker store sales, even as online sales rose by more than 10%.

Store sales have declined by about 5% year to date, while online sales grew at a double-digit pace, the company said. Pets at Home still plans to open ten new veterinary practices in the current financial year and to extend 15 existing sites, part of a broader investment program in the store network and pet services.

Analysts pointed to the fall in profits and the leadership shake-up as a sign of ongoing weakness in consumer demand for discretionary pet products. Neil Wilson, UK investor strategist at Saxo Markets, said investors are "scolding this one like a naughty puppy that's done its business where it oughtn't."

Lyssa McGowan became chief executive in 2022 and was recognised with an OBE for services to retail in June. The board’s decision to replace her comes as Pets at Home contends with a market that has cooled after a surge in pet ownership during the pandemic, though the current environment remains softer than many peers had anticipated.

With McGowan’s departure, the firm is seeking a permanent successor while continuing to run the business and pursue its growth plans in veterinary services and pet products. The company emphasised that current trading updates are independent of any new leadership appointment and that the strategic priorities remain unchanged as it manages through a period of economic uncertainty.

The group operates a network of stores that provide small animals, pet foods, beds and toys, along with grooming and veterinary services. The company remains a FTSE 250 member and faces the challenge of delivering earnings growth in a market that has shown signs of recovery online but uneven momentum in stores.