Pets at Home shares slump as CEO exits amid second profit warning

Pets at Home plc said its chief executive Lyssa McGowan has left the business with immediate effect, as the retailer issued a second profit warning for the current year and its shares tumbled in early trading. The stock fell about 23%, wiping roughly £240 million from the group’s market value on the day of the announcement.

The board named Ian Burke as executive chairman on an interim basis while it conducts a search for a permanent successor. McGowan, who took the helm in 2022 and was named an OBE in June for services to retail, leaves amid a shake-up at the top that also coincides with a fresh profit downgrade.

The company cut its profit guidance for the 2025-26 financial year to between £90 million and £100 million, down from a previous forecast of £110 million to £120 million. That would mark a sharp drop from £133 million in the prior year. Management cited a still-subdued pet market and weaker sales at stores, even as online sales rose by more than 10 percent. Store sales are running about 5 percent lower year to date, underscoring persistent headwinds despite some improvements in retail performance in recent months.

Pets at Home said it remains focused on expanding its veterinary network, with plans to open ten new practices during the current financial year and extend 15 existing sites. The company operates stores that sell pets, pet products, grooming services and a veterinary business, alongside online channels.

Investors wasted little time in reacting, with analyst commentary highlighting the challenge of turning around growth in a subdued market. Neil Wilson, UK investment strategist at Saxo Markets, said investors are treating the update as a chastening moment for the stock, likening the reaction to scolding a dog that has misbehaved.

The leadership change and the second profit warning come as Pets at Home, a FTSE 250 member, grapples with softer consumer spending on discretionary pet products even as the group works to leverage its diversified services, including grooming and veterinary care, to stabilize performance over the longer term. The board said it appreciated McGowan’s contributions since 2022 and would continue to pursue execution of the company’s strategic plan under new leadership.