GlobalData : Pets at Home shows no signs of slowing as it raises profit guidance following strong Christmas period

08 Jan 2021
Pets at Home shows no signs of slowing as it raises profit guidance following strong Christmas period Posted in Retail

Following today's release ofPetsatHome's trading update for the 11 weeks to 31 December (Q3 ofthe retailer's financial year):

Jonathan Rock, Associate Retail Analyst atGlobalData, a leading data and analytics company, comments:

'PetsatHomeraised its profitguidancefor FY2020/21, and now expects to achieve an underlying pre-tax profitof£77m, including the £28.9m repayment ofbusiness rates relief (£105.9m profitwithout this repayment); this is ahead ofthe £93.5m guidancegiven in November.

'The momentum PetsatHomegained in its Q2 accelerated in Q3, with group like-for-like sales achieving 'high-teen' growth in December. The tightening ofCOVID-19 restrictions in November and December alongside widespread anticipation ofanother lockdown in January likely incentivised purchases ofboth pets, to combat isolation and boredom, and pet care asmore time is spent athome.

'Under current lockdown regulations, the retailer is classified asessential and vets are not limited to emergency-only work asthey were in last March. With schools closed until atleast the middle ofFebruary, PetsatHomecould benefit from another boom in pet and pet care demand to keep children occupied. PetsatHome's cash position was strengthened by the disposal ofits specialist veterinary business, providing £80m.'