Shares plummet for Pets at Home as CEO announces immediate departure and firm cuts profit outlook
Shares in Pets at Home fell around 23 per cent this morning after the company downgraded its profit expectations for the year and announced that its CEO would step down with immediate effect.
In an unscheduled trading update, the pet products supplier announced that it now expects full-year pre-tax profits to land between £90 and £100m, a downgrade from its previous expectation of between £110 and 120m – which it announced in July.
It came as the company also announced that its CEO, Lyssa McGowan, had left the business with immediate effect.
Shares in the firm fell to their lowest in over five years following the announcement, dropping just under 23 per cent at their lowest before lifting again marginally.
A statement from the company issued to the London Stock Exchange said: “The board would like to thank Lyssa McGowan for her commitment to leading the business since she became CEO of the business in 2022.”
The firm said that it had now begun the search for a new CEO, adding that Ian Burke, non-executive chair, had assumed the role until one was found.
Pets at Home said in its announcement that a subdued market had in part led to its profit downgrade, adding that its existing guidance had assumed a one per cent retail market growth.
Its statement said: “Through the second quarter, the underlying pet retail market has remained subdued, declining slightly year to date.
“Against this, we have seen the performance of the Retail business improve sequentially, narrowing the gap to the market, but the rate of improvement has been below expectations.
“We continue to see double-digit digital sales growth, outperforming the online retail market supported by our improved digital platform and strong growth in Easy Repeat subscriptions.
“In contrast, our store sales have proved more challenging, declining five per cent year to date.”
Pets at Home added that its Vet Group arm had delivered high single digit sales growth, and that it was on track to deliver its planned 10 new practices in the 2026 financial year, as well as 15 vet extensions and “another year of profit progress”.
In May of this year, as Pets at Home announced its most recent full-year results, the firm said it had seen a “profound transformation” over recent years.
The company posted underlying pre-tax profits of £133m for the year ending 27 March, a 0.7 per cent lift on the year prior.
In a statement at the time, then CEO Lyssa McGowan said: “The past two years have seen a profound transformation at Pets at Home. We have moved from a business with a strong presence in pet retail and vets, to a true pet care platform.”