Pets At Home collapses in London after estimates are cut and the CEO resigns.

(Il Sole 24 Ore Radiocor) - A cut in profit forecasts and the immediate resignation of the CEO have sent Pets at Home crashing on the London Stock Exchange . Shares of the UK's leading pet products and services provider fell more than 20% in the early stages of the session. In an unexpected market update, the company announced that CEO Lyssa McGowan has stepped down with immediate effect and that a search for a permanent CEO has begun. Meanwhile, the role has been handed over to non-executive chairman Ian Burke.

McGowan was appointed in 2022. Pets at Home, which had expected a 1% increase in its Retail sector for the 2026 financial year, warns that the pet products market remained weak throughout the second quarter. Online sales posted double-digit increases, but in-store sales have declined 5% so far . The Veterinary sector has continued to record sales growth of around 8%. Against this backdrop, Pets at Home now forecasts an adjusted pre-tax profit of £90-100 million for the 2026 financial year , having previously forecast a profit of between £110-120 million. Analysts had on average expected a pre-tax profit of around £116 million. The company had already lowered its full-year profit forecast in July, citing a slower-than-expected recovery in its retail division.

As analysts note, pet industry demand has slowed in the UK due to persistent inflation and the rising cost of living. As a result, owners are cutting back on spending, particularly on non-essential purchases. "We believe Pets will need to invest to address the poor performance of its stores," said analysts at RBC Capital Markets, noting that the pet retail market is likely to remain challenging.