(Reuters) – British Pets and Home Group cut its full-year profit forecast on Tuesday after its retail business saw growth below expectations, with customers limiting spending on accessories for their pets animal
The group, which also offers grooming and veterinary services, said it expected underlying pre-tax profit to be around 132 million pounds ($167.5 million) for the year, compared with its previous target of around 136 million pounds.
Pet ownership, which has increased during pandemic lockdowns when people work from home, has boosted demand for the company’s veterinary services and food products.
However, customers are more cautious about discretionary spending for their furry companions, amid an uncertain economic environment.
The company posted a 3.7% increase in retail revenue on a like-for-like basis and exited the third quarter with a clean inventory position.
“While a slower market over the peak means that our sales growth has not quite hit the levels we had hoped for, the business remains well-positioned to benefit from long-term growth in the sector,” said Chief Executive Lyssa McGowan said in a statement.
($1 = 0.7883 pounds)
(Reporting by Radhika Anilkumar in Bengaluru; Editing by Savio D’Souza and Dhanya Ann Thoppil)
