Pets at Home sales hit by lockdown
Pets at Home has reported a decline in revenue in the first quarter of its financial year as sales in the initial weeks of the period were impacted by the Covid-19 lockdown.
In the 16 weeks to 16 July, total revenue and like-for-like revenue fell by 1% and 0.7% respectively. Although like-for-likes dropped by 13.5% in the first eight weeks of the period, they recovered to growth of 12% in the subsequent eight weeks. This meant the company ended the quarter ahead of expectations.
Meanwhile, group revenue and like-for-like revenue from Pets at Home’s vet practices fell by 10.9% and 9.3% respectively in the period.
Peter Pritchard, Pets at Home chief executive, said: “In spite of the rapid, wide-ranging and devastating effects of the pandemic, we have remained open for our customers throughout the period and we are emerging as a stronger business. The inherent resilience in our pet care model and the underlying pet care market, as well as encouraging signs of increased pet ownership, all underpin our confidence in seizing the future and progressing specific, strategic priorities.”
While the company said it has responded quickly and adapted well to changes in customer behaviour due to the Covid-19 crisis, it said it was difficult assess the short-term outlook due to uncertainty over the duration and ongoing impact of social distancing, the risk of a second lockdown, and macro headwinds.
Looking further ahead, the company added: “We remain as confident as ever. We have a large and growing loyal customer base, growing annuity income streams, scalable omnichannel and veterinary businesses, and offer a unique combination of products and services, all of which provide considerable opportunities for sustainable growth.”
