Engaged in pet retailer Pets at Home (LSE: PETS) fell 2.6% in early trading Tuesday after the company said quarterly sales “didn’t quite hit” expected levels. The FTSE 250 company now expects full-year pre-tax profit at the lower end of previous guidance.
In a trading update, Pets and Home said total group revenue rose 4.3% to £362.4 million in the three months to January 4. On a like-for-like basis, growth was 4.4%. The company’s veterinary division saw a “strong” 13% jump in sales, helped by additional vet recruitment.
However, growth of 3.5% in the retail division was below internal forecasts. Pets at Home said the business remains “very well positioned” with gains in pet food market share.
Lackluster retail, Pets and Home cut full-year pre-tax profit expectations to around £132 million – ahead of last year’s £122.5 million but the low end of the previous £132-142 million guidance
Read More News:
WPP is betting on AI to drive growth and savings
Chief Executive Lyssa McGowan said the “slower market over peak” meant sales increases were not meeting expected levels. But he added that colleagues “delivered a record sales performance” in the key Christmas period.
Pets and Homes remains “solid” financially, McGowan added, expecting to end the year in a net cash position. Shares have fallen more than 13% in the past year.
