Core Viewpoint - The value of Pets at Home has decreased by over £160 million as the surge in pet ownership driven by the Covid-19 pandemic comes to an end, leading to a significant drop in share prices and profit forecasts [1][2]. Group 1: Financial Performance - Pets at Home has revised its profit before tax expectations to between £90 million and £100 million for the fiscal year ending in March, marking a second downgrade from previous estimates of £110 million to £120 million [2]. - Store sales have declined by approximately 5% year-to-date, indicating a subdued underlying retail market [5]. Group 2: Market Trends - The company is facing challenges due to a decrease in pet ownership in the UK, with 51% of adults owning a pet last year, down from 53% in 2022 [3]. - The return to office work has normalized pet demand, removing a significant growth driver for Pets at Home [4]. Group 3: Management Changes - Following the profit warning, the CEO of Pets at Home, Lyssa McGowan, has resigned, and the company is currently seeking a successor [2]. Group 4: Cost Pressures - Pets at Home is dealing with increased labor costs due to recent tax policy changes, which are expected to add £18 million to its expenses this year [5].