Pets At Home performance ‘ahead of expectations’

Pets At Home (LON:PETS) has upgraded its profit guidance again as raised demand for pets during lockdowns is showing no signs of slowing down.

The company announced on Friday that it is forecasting its underlying pre-tax profits to reach £85m, up £12m from its previous forecast of £77m. 

Pets At Home changed its guidance upon learning that its trading during Q4 of its financial year was stronger than anticipated. 

The company said: “In our trading update on 8 January 2021, our guidance for full-year profit out-turn reflected a number of ongoing uncertainties over the near-term outlook, including renewed challenges from higher Covid infection rates and restrictions on a national level, as well as potential supply disruption relating to the UK’s exit from the European Union.”

“Notwithstanding this challenging external environment, our performance over the last eight weeks has been ahead of expectations, with continued strong and broad-based growth across all channels and categories.”

Before lunchtime on Friday the Pets At Home share price was up by over 6% as investors reacted to the FTSE 250 company’s announcement. 

“The rapid improvement is evidence of just how strong recent trading has been, and the effect rolling lockdowns are having — both on pet ownership and our willingness to splash out on our furry friends,” said Nicholas Hyett, equity analyst at Hargreaves Lansdown.

Pets At Home has been a beneficiary of lockdowns, revealing an “exceptional level of demand” in November, as the company’s revenue shot up.

In January, Pets At Home revealed that its retail sales climbed up by 17.5% between October and December.

Pets At Home is the UK’s leading pet care business with over 451 stores, many of which also have vet practices and grooming salons.