Pets at Home shares slump as sales growth misses expectations
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Shares in Pets at Home fell sharply yesterday (Wednesday) after the company's first-quarter sales growth missed expectations.
Total revenue rose 6.4% to £224.2m in the 16-week period from 27 March to 16,July with like-for-like revenue growth of 1.7%, falling short of analysts' expectations for around 3%.
Pets at Home said sales were driven by Advanced Nutrition, VIP club, Services and Omnichannel, although this was partially offset by a poor season for Health & Hygiene products and very hot weather in July.
During the quarter, the company, which said its full-year outlook remains in line with market expectations, opened three stores, six veterinary practices and four Groom Room salons.
Chief executive officer Nick Wood (above) said: "Our core strengths in Advanced Nutrition, vet and grooming services have continued to deliver in the first quarter, underpinned by our VIP loyalty club. We have been particularly pleased with such strong VIP membership signup and swipe rate of the card at tills.
"Following strong Health & Hygiene product performance in the prior year, we experienced a particularly challenging season this quarter, which alongside a short period of very hot weather in July, created a significant impact on group revenue performance."
At one point yesterday the company's shares were down 5.5% at 272.10p.
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