Pets at home Share Chat (PETS)

Hi Tony - interesting point, but to say people would rather starve themselves that skimp on their pets is a bit extreme. Yes, we’re a nation of animal lovers, and I am a pet owner - the reason I bought these shares is my own experience of watching other people spaf, and my own kids encourage me to spaf, a fortune at this place - but make no mistake if things got tight I would not visit this place again. I would buy online and avoid the pester power. I’m lucky, I’m comfortable and have locked in my mortgage at a ridiculously low rate, but if my mortgage had just lept and I was struggling with the bills, I’d be cutting down on cr*p for the dogs before I starved my children! Appreciate there is a big fat middle ground, and agree peeps will continue to spoil their pets if they can.

I will try not to be too disparaging " No sign of folks skimping on their pets yet" is absolutely wrong thinking and yet time and again I see it in connection with this share. This is a retail business but to characterise it with that comment is to fail to understand the nature of the business and the psyche of the customers this outlet appeals to. Let me re-phrase it - "customers would rather starve themselves than skimp on their pets". That is why this is going to be so resilient in the difficult times of the near future; there never will be a "yet".

Yes - looks good. No sign of folks skimping on their pets yet. No doubt the market will find something to dislike in it though! I really don’t think this business, or indeed the market it is in, is given enough credit.

Another good news announcement. Revenue revised upwards.

Revenues went up 7% here as well, the issue is energy costs. The USA produces its own energy so not as vulnerable to the global energy crisis.

It was interesting that in the US - a similar company to PET which is called Petco health & wellness - announced yesterday a 7% increase on Revenues and the share price went up 15% in one day!
Would be nice to see this here?!? or if we continue at such a low share price - could they buy us?

BarneyR - The Correct buy price for PETS is a revisit to the March - July 2020 lows - so 240p. That’s how I see it anyway. GL

X-div today so drop a was expected hold well from last night close. I’m happy to hold, inflation headwinds will subside, hopefully soon. This imo will be back 290 - 300 within a year, up to 15% return from here. The company seems to be well run, and still buying back at a lot cheaper rate! (All in my opinion).

Heading for sub 260 very slowly . Overall results were in line but hefty fall in profit . Energy and freight up considerably . Great overall business and it is on my watch list . I just don’t think we have bottomed yet . Thoughts folks ?

Doesn't appear there is much if any interest in the dividends , even at this price.

I’ll never understand the markets. A company investing in its future and successfully increasing its long term client base in profitable areas and we get clobbered! As you say, at least the buy backs are better value. I’m happy to hold here.

well at least the buy back shares will be cheaper today.

When I read them they seemed very strong, all the market has focused on is the 9% reduction in profit bit.
I've topped up because reading those results, I wouldn't be surprised if this quarter is stronger still.
No one skimps on their pets at Xmas and with their health.

The market doesn't seem to get pets or really understand their market as they cannot compare it to other companies other than supermarkets. That is a good set of figures.

Only skipped through them, but it looks to me like the market has reacted to the increase in costs. Hopefully these will be transient and the increase in sales and club memberships should send profit growth nicely for the next few years.

I agree, but still the SP goes down again!!

Look very good and our new CEO comes across as being very positive.

Should be good but stating caution for remainder of the year. Shops always seem busy.

Interim results out tomorrow.

Deutsche recommended buy on 8/8 when the sp was 337. Their target was 385, which it hit on 17/8 - profit taking, PETS being accommodated during share buyback, and of course the drop in 250 stocks. All part of the game, and we all know that pets love games !
Regards.

I totally agree with you, FTSE 250 took big hit last few days, most shares are down unless you are in gas and oil stock, plus profit taking after sharp rise

It's puzzling. Some owners are going to feel the pinch in the next few months and they might look to rehome their pets but I doubt they'd have them actually put down. Even if they switch suppliers and move to a budget shop, sales might fall by let's guess 5%, research in US predicts global pet service market to grow at a compound rate of 9.1% PA 2022 to 2030. Answers anyone?

why the dip today?

https://twitter.com/surprised_trade/status/1555448616529154048

Short Interest has moved from 1.14% to 0.64% and todays results show why

Total Group revenue up 7.1% to £404.7m, with Group like-for-like1 (LFL) revenue up 6.0%, reflecting broad-based growth throughout the quarter.

o Retail revenue increased by 6.6%, and LFL1 revenue up 5.6%. All channels remain in growth, with Store LFL1 of 4.3% and Omnichannel2 LFL1 of 13.5%. Omnichannel participation of Retail revenue was 16.7% in the quarter, compared to 15.8% for FY22.

o Vet Group revenue increased by 11.2%, with LFL1 revenue up 8.6%. LFL1 customer sales3 across all First Opinion practices up 4.6% and LFL1 Joint Venture fee income up 9.6%.

· Continuing growth in new customers and strong retention of the 1.1m customers acquired last year, combined with the non-discretionary nature of our affordable pet care proposition, supporting ongoing growth in spend.

o Sign ups to our Puppy and Kitten Club continued at pace, averaging 25,000 per week, three-fold higher than pre-pandemic, and creating a 12-15 year growth opportunity over the full pet lifetime.

o New client registrations across our First Opinion veterinary practices remained strong, averaging over 8,500 per week, growing our active client base to 1.7m.

o The number of active VIPs increased 10.7% YoY to a record 7.4m, with our strategic focus on deepening customer relationships resulting in 27% of all VIPs shopping across more than one channel, up 14% YoY.

o The number of subscription plans4 across the Group grew 16% YoY to over 1.5m, generating over £135m in annualised recurring customer revenue, representing c8% of Group customer revenue.

· Good sales to profit conversion as we continue to proactively manage inflationary cost pressures through a planned series of productivity and efficiency initiatives.

· Our balance sheet remains robust, with net cash of £40.2m and good liquidity through our recently renewed £300m revolving credit facility until 2027. The vast majority of our currency requirements are hedged over the next 12 months, and we are progressing our previously announced £50m share buy back programme.