Pets At Home boss quits as retailer cuts annual profit outlook again

Pets At Home has announced its boss Lyssa McGowan has quit the business and said it was cutting its annual profit outlook for the second time this year.

Shares in the London-listed retailer plunged by more than a fifth on Thursday after the update.

Chief executive Ms McGowan has left “with immediate effect” and a search for her successor has begun, it told investors.

Ms McGowan, who was made an OBE in June for her services to retail, had led Pets At Home since 2022.

The chain has struggled against declining sales over the past year which it has blamed on a “subdued” pets market and weaker consumer confidence.

Pets At Home sells small animals like rabbits and hamsters and products for pets through its retail business, and also provides veterinary healthcare and grooming services at centres across the country.

Ian Burke has taken on the role of executive chairman until a permanent chief executive is hired, the firm said.

It also told investors it was downgrading its underlying pre-tax profit forecast for the 2025-26 financial year, now expected to be in the range of £90 million to £100 million.

It previously cut the outlook to between £110 million and £120 million.

The guided annual profits would mark a drop from the £133 million reported the previous year.

While the retail sales performance has improved in recent months, it has been by less than the company was expecting.

Online sales have risen by more than 10% but store sales have declined by 5% over the year to date, it said.

Pets At Home is still planning to open 10 new vet practices during the financial year alongside extensions on 15 existing sites.

Shares in the firm had tumbled by about 22% on Thursday morning.