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(Alliance News) - Pets At Home Group PLC on Friday announced a quarterly revenue drop but said increased pet ownership will drive long term growth.
Shares in Pets at Home were up 16% at 298.40 pence each in London on Friday morning.
The animal products retailer reported total revenue in the quarter ended July 16 was down 1.0%, with a 0.7% fall in like-for-like sales. However, the company said like-for-like sales bounced back in the second half of the quarter with revenue growth of 12.0%.
The Chesire, UK-based company said its Vet Group also faced a revenue slump of 10.9% and like-for-like sales reduction of 9.3%, reflecting regulatory restrictions on joint venture fee income and customer sales due to the pandemic.
Pets At Home said it sees "tangible signs of heightened demand for pet ownership" as the number of VIP members grew 20.3% to 5.7 million year-on-year and Puppy & Kitten Club members grew 12.0%.
Looking forward, it explained this growth should mitigate requirements for further short-term financial support to counteract the impacts of Covid-19.
"In spite of the rapid, wide-ranging and devastating effects of the pandemic, we have remained open for our customers throughout the period and we are emerging as a stronger business. The inherent resilience in our pet care model and the underlying pet care market, as well as encouraging signs of increased pet ownership, all underpin our confidence in seizing the future and progressing specific, strategic priorities," said Chief Executive Peter Pritchard.
By Neetika Kurup; neetikakurup@alliancenews.com
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