(Sharecast News) – Pets at Home stuck to its outlook for annual results as the company posted an 18% increase in third quarter revenue amid a boom in pet product sales.
Total group revenue rose to £302m in the 12 weeks to the end of December as like-for-like revenue jumped 17.6%, the company said in an update.
Retail revenue growth of 17.5% was broad-based with like-for-like store income rising 12.3% despite a second English Covid-19 lockdown in November. Trading momentum increased over Christmas with December like-for-like revenue rising 19.3%.
Online trade, instore click and collect orders and flea and worming subscriptions rose 71% as customers adapted during the second national lockdown. The number of high-spending puppy and kitten club members jumped 47% and VIP membership increased 12% to 6.2m. Vet revenue rose 22%.
Spending on pet products has surged during the Covid-19 crisis as households have bought puppies, cats and other animals to liven up lockdowns and with many people expecting to work from home in future.
Pets at Home shares, up more than 40% in the past year, rose 1.9% to 411p at 09:09 GMT.
The FTSE 250 group said it expected annual underling pretax profit of at least £77m. The forecast includes repayment of £28.9m of business rates relief and is in line with previous guidance.
Chief Executive Peter Pritchard said: “I am very pleased with the progress we have made in this quarter, in particular how we have adapted to the changing environment in which we operate.”
Sophie Lund-Yates, an analyst at Hargreaves Lansdown, said: “The lockdown puppy boom is doing wonders for Pets at Home’s revenues. The sales of the items needed to get a new furry friend set up at home will have boosted performance. The continued rise in the group’s VIP and puppy and kitten club memberships have long-term benefits. The increased data these memberships provide will help Pets at Home hone its offering, which should act as a sales boost.”
