Pets at Home lowers guidance despite Q3 revenue jump
As a result of all this the company now expects its FY24 group underlying profit before tax to be around £132m
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Pets at Home has lowered its underlying profit before tax guidance to around £132m despite the fact its group revenue rose to £362.4m for the 12 weeks ended 4 January 2024, a 4.2% increase on last year.
The pet retailer also revealed its consumer revenue rose 6.0% last year and 15.4% on a two-year basis. The retailer put this down to a growing average customer spend and growth in active VIP members, up 2% YoY to 7.7 million.
The company’s retail performance saw Q3 revenue rise 3.5% and LFL up 3.7%, resilient against very strong performance last year, but below company expectations.
Pets at Home saw continued strong performance in its vet group with Q3 revenue up 13.4%, and LFL up 13.3%.
Lyssa McGowan, CEO, said: “Our colleagues came together over our peak trading period to deliver a record sales performance, growing against a very strong performance in the prior year.
“While a slower market over peak meant our sales growth didn’t quite hit the levels we expected, the business remains well positioned to benefit from long term growth in the sector as we continue to win share and grow volumes across food and deliver differentiated performance through our unique vets business.”
She added: “Importantly, we will shortly follow up launching our new distribution centre with the launch of our new digital platform, in line with our target. Our new digital platform is a key foundation of our growth strategy, bringing vastly improved user experience to our consumers, and creating opportunities to improve cross-sell into accessories and further grow share of wallet. With these foundations now in place we are well positioned for the future.”
