Pets at Home: profit guidance raised after encouraging quarter

Pets at Home like-for-like sales rose eight per cent in its first quarter, prompting the retailer to raise its profit guidance
Pets at Home raises profit guidance after like-for-like sales rose 8% in the first quarter. (Image: Shutterstock)
// Pets at Home says full-year underlying profit will be slightly above current market expectations
// Like-for-like sales up 8% in 16 week period to July 18
// Pets at Home remains cautious of “ongoing uncertainty across the wider retail sector”

Pets at Home like-for-like sales rose eight per cent in its first quarter as the retailer continues to explore the services it can offer customers.

In the 16 weeks to July 18, group revenue rose 9.9 per cent to £303.4 million compared to the previous 16 week period, with retail revenue up 8.7 per cent to £266.4 million.

Omnichannel revenue rose 36 per cent in that time, coming in at £26 million for the 16 weeks.

Like-for-like sales were up 8.2 per cent for the group, with Pets at Home stating it expects underlying profit for the year to be slightly above market expectations.

The retailer said this was down to good cash growth in its retail stores.

“The momentum with which we exited FY19 has continued into the first quarter of FY20. We have seen a strong sales performance across the business, particularly in Retail where like-for-like sales were 8.2 per cent – an impressive 14 per cent on a two year basis,” Pets at Home group chief executive Peter Pritchard said.

“At this early stage in the year, and with ongoing uncertainty across the wider retail sector, we remain cautiously optimistic and focused on delivering our pet care strategy.”

The news comes two weeks after Pets at Home acquired a stake in dog-walking and pet-sitting service Tailster.

This is the pet supply retailer’s first move in entering the £1 billion a year pet-minding market, which includes dog walking and cat sitting.

The purchase of the stake is also part of Pets at Home’s strategy to generate 50 per cent of revenue from pet services.

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