08 Jan 2021
Posted in Retail
Pets at Home shows no signs of slowing as it raises profit guidance following strong Christmas period
Following today’s release of Pets at Home’s trading update for the 11 weeks to 31 December (Q3 of the retailer’s financial year):
Jonathan Rock, Associate Retail Analyst at GlobalData, a leading data and analytics company, comments:
“Pets at Home raised its profit guidance for FY2020/21, and now expects to achieve an underlying pre-tax profit of £77m, including the £28.9m repayment of business rates relief (£105.9m profit without this repayment); this is ahead of the £93.5m guidance given in November.
“The momentum Pets at Home gained in its Q2 accelerated in Q3, with group like-for-like sales achieving “high-teen” growth in December. The tightening of COVID-19 restrictions in November and December alongside widespread anticipation of another lockdown in January likely incentivised purchases of both pets, to combat isolation and boredom, and pet care as more time is spent at home.
“Under current lockdown regulations, the retailer is classified as essential and vets are not limited to emergency-only work as they were in last March. With schools closed until at least the middle of February, Pets at Home could benefit from another boom in pet and pet care demand to keep children occupied. Pets at Home’s cash position was strengthened by the disposal of its specialist veterinary business, providing £80m.”