Pets at Home has lowered its full-year profit outlook after sales growth in its main retail division came in below expectations during the quarter covering the Christmas period.
Like-for-like retail sales rose 3.7% over the 12 weeks to 4 January, which the group claimed was a “resilient” result against a strong performance last year. However, it was behind expectations as consumers cut back on spending in the difficult economic environment.
Pets at Home noted that it had seen volume growth and share gains across pet food, against a slowing market backdrop. However, discretionary accessories trends remained soft.
Meanwhile, there was continued strong performance in its Vet business, with revenue up 13.3% on a like-for-like basis, driven by a blend of price and a shift to more advanced procedures.
The group now expects underlying pre-tax profit to reach £132m for the year, down from its previous target of around £136m.
Chief Executive, Lyssa McGowan, commented: “While a slower market over peak meant our sales growth didn’t quite hit the levels we expected, the business remains well positioned to benefit from long-term growth in the sector as we continue to win share and grow volumes across food and deliver differentiated performance through our unique vets business.
“Importantly, we will shortly follow up launching our new distribution centre with the launch of our new digital platform, in line with our target. Our new digital platform is a key foundation of our growth strategy, bringing vastly improved user experience to our consumers, and creating opportunities to improve cross-sell into accessories and further grow share of wallet. With these foundations now in place we are well positioned for the future.”
