Pets at Home lifted by vet services amid weak demand for toys and treats
Pets at Home lifted by vet services amid weak demand for toys and treats
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Pets at Home Group reiterated its annual earnings guidance on Tuesday despite the retailer reporting marginally weaker trading. Britain's biggest pet supplies business claimed it was 'on track to deliver modest growth' in underlying pre-tax profits this financial year, with analysts predicting the company making £134million in the year ending March.
The Cheshire-based firm said it had kept gross margins 'disciplined' thanks to good cost control and strong sales of Christmas products against a more difficult trading backdrop. Its total turnover relatively flatlined at £361.6million in the 12 weeks ending 2 January, while like-for-like revenues shrank by 1 per cent owing to subdued footfall in its retail division.
This offset a very strong performance by its veterinary segment, which saw sales soar by 21.3 per cent thanks to higher numbers of visits, subscriptions, and average transaction values at its practices. Outlook: Pets at Home, Britain's biggest pet supplies business, claimed it was 'on track to deliver modest growth' in underlying pre-tax profits this financial year.
Britain's retail industry has experienced more challenging conditions in recent months amid a stagnating UK economy and the fallout from the Autumn Budget. Chancellor Rachel Reeves announced that employers' National Insurance rates would go up in April from 13.8 per cent to 15 per cent.
