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The UK’s largest pet retailer has held steady on its full-year profit guidance, despite experiencing sluggish trading over the festive period amidst challenging consumer conditions.
Pets at Home reported group revenue of £361.6 million for the 12-week period ending 2 January, marking a 0.2 per cent decline compared to the previous year. The company’s retail division proved particularly challenging, with revenues falling 2.4 per cent and like-for-like sales dropping 2.8 per cent during the quarter.
The Cheshire-based organisation cited a “subdued” consumer environment, with notably low footfall in October. Despite these challenges, the company observed improvements in digital performance and strong seasonal product sales. The retail downturn was partially balanced by remarkable growth in its veterinary services, where like-for-like revenues surged 19.9 per cent, driven by higher transaction values and increased subscription numbers.
The London-listed company maintains its trajectory for “modest growth” in annual profits, whilst acknowledging a £11 million cost impact this financial year from its operational transition between distribution centres, moving from Northampton to Stafford.
Since its establishment in 1991 by Anthony Preston, the company has expanded to operate more than 450 pet care centres across Britain. The current business model integrates retail stores with veterinary practices and grooming salons, alongside the sale of small animals and pet supplies.
Chief Executive Lyssa McGown reported that weekly puppy and kitten registrations have decreased to approximately 15,000, compared to 24,000 in 2023. The company is currently implementing a strategic shift towards a “unified pet care platform”, consolidating its various services through a comprehensive mobile application.
Market response has been positive, with shares in Pets at Home rising 8½p, or 4.1 per cent, to 219p, despite Panmure Liberum analyst Wayne Brown noting potential softness in share performance due to retail division challenges.
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