Pets at home Share News (PETS)

(Sharecast News) - Pets at Home reaffirmed its full-year guidance on Wednesday as it posted a jump in third-quarter sales thanks to solid performances from both its retail segment and vet group.
In the 12 weeks to 2 January, group revenue rose 7.9% to £255.9m, with retail revenue up 7.2% and vet group revenue 14.4% higher.

On a life-for-like basis, group revenue was up 7.2% over the quarter, with retail LFL revenue growth of 7% and vet group growth of 8.9%.

Pets said the UK pet care market remains "resilient" and it continues to take share across the retail and vet segments.

The company hailed a "record-breaking" performance in its retail division, including its biggest ever online and offline trading days and the grooming of 6,023 dogs in a single day.

Chief executive officer Peter Pritchard said: "Our sales performance in the quarter proves once again that by offering convenient and affordable pet care to customers, we can further strengthen our market leading position. Against a backdrop of unprecedented consumer volatility, our continued momentum leaves us very much on track with our plans for the year."

Pets backed its outlook for the full year. It continues to expect underlying pre-tax profit before the impact of IFRS16 to be in line with market consensus of between £87m and £101m.

At 0940 GMT, the shares were up 1.7% at 291.62p.

Sophie Lund-Yates, equity analyst at Hargreaves Lansdown, said: "Pets at Home's strategy is fetching results. The third quarter saw the group post record trading days, both on and offline, which is a feat many retailers could only wish for. What's promising is Pets has been able to make the most of cross selling.

"We don't have any colour on prices or margins this time, and historically Pets at Home has invested in keeping prices low to stave off competition. There's been plenty of noise around discounting plaguing the retail section, so it's not unfeasible the group was forced to keep up with its old habit.

"With financial guidance unchanged for the full year though, any price cuts don't look to have cut too deeply."