Pets At Home (PETS.L) posted a 7.1% rise in first-quarter income because it continues to revenue from the pandemic pet increase.
The FTSE 250 (^FTMC) firm acquired 1.1 million new clients final 12 months because the lockdown-driven increase in pet possession created new alternatives for animal retailers.
Sign-ups to its puppy and kitten membership — a subscription service for pet house owners — averaged 25,000 per week, 3 times greater than earlier than COVID, the retailer mentioned.
Total income grew 7.1% to £404.7m ($491m) within the 16 weeks to 21 July, whereas income for its vet arm elevated by 11%. Like-for-like gross sales rose 6%.
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Pets At Home ended the quarter with £40.2m in web money and mentioned its full-year revenue outlook of £131m remained unchanged.
Lyssa McGowan, Pets At Home chief govt, mentioned: “Our performance has remained strong in the first quarter, underpinned by continued customer growth and high levels of retention.”
Steep cost inflation has impacted the business in latest months with rising costs of uncooked supplies and large surges in power prices.
But it plans to handle cost pressures by lowering prices and enhancing operational efficiencies and due to this fact avoiding worth rises for purchasers, bosses mentioned.
AJ Bell funding director Russ Mould mentioned: “Items like pet food purchased for furry friends don’t seem to be experiencing a slide in demand impacted by higher prices, perhaps because that outlay typically represents a modest portion of overall household spending,” mentioned AJ Bell’s Russ Mould.
“The pandemic additionally noticed the UK’s pet inhabitants enhance as folks welcomed lockdown puppies, kittens and different cute critters to their home.
“While some might have subsequently misplaced curiosity of their new additions, the emotional attachment concerned means nearly all of pet house owners will nonetheless preserve catering to the wants of their furry pals.”
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Matt Britzman, fairness analyst at Hargreaves Lansdown, mentioned: “The pandemic fuelled pet possession craze was a blessing for Pets At Home and people cats and dogs will want taking care of lengthy into the long run.
“What’s very attention-grabbing with Pets At Home is its hybrid method, omni-channel income continues to develop and was the standout this quarter.
“That’s testament to a lot of work that’s gone into boosting the online offering, with services like click and collect meaning customer journeys are a mix of online and in-store.”
Pets At Home was based by businessman Anthony Preston in 1991.
