Pets at Home raises profit forecast as shopper demand accelerates

Pets at Home has hiked its profit guidance after the retailer was buoyed by higher demand for pet food, accessories and vet services over the Christmas period.

The retail group’s boss, Lyssa McGowan, hailed a “really pleasing” performance despite the “challenging inflationary environment”.

The pet products and vet group said group revenues lifted by 8.8%, to £347.5 million over the 12 weeks to January 5, compared with the same period last year.

This surpassed its medium-term growth ambitions, it said.

Pets at Home said “robust trading momentum has continued” into the fourth quarter of the financial year.

It was particularly pleasing to see our accessories category return to growth, supported by the strong performance in our Christmas range, demonstrating that consumers still want to treat their beloved pets in these challenging times

As a result, pre-tax profit for the year is due to be ahead of previous guidance of £131 million, it said.

The company also said freight container costs have continued to move “favourably” after surging in the pandemic’s aftermath.

Pets at Home said retail revenues increased by 8% over the latest quarter on the back of growth across all its key categories.

Vet group revenues jumped by 18.1% for the period, it added.

Ms McGowan, chief executive officer of Pets at Home, said: “We delivered a really pleasing Q3 with acceleration in sales momentum across the platform.

“Importantly, the quality of our growth remains strong as we continue to grow volumes and attract new consumers through offering compelling value and service in what remains a challenging inflationary environment.

“It was particularly pleasing to see our accessories category return to growth, supported by the strong performance in our Christmas range, demonstrating that consumers still want to treat their beloved pets in these challenging times.”