Pets at Home shares soar on surging demand for dogs and cats
Shares in Pets at Home shot up by a fifth after the retailer said it would make more money than expected this year as pet owners splash the cash on their pooches and cats, and more Britons become pet owners.
The chain has 451 stores, many of which also have vet practices and grooming salons. It said its like-for-like sales grew by double-digits in the eight weeks to Sept 10.
As a result, it expects pre-tax profit for the year to be more than its previous forecast of £73m.
The stock was up almost 21pc, or 64p, to 369p in early trading - an increase of 28pc over the last 12 months.
Pets at Home was forced to shut some of its stores to make them Covid secure although it was allowed to stay open as an essential retailer. Since lockdown, many Britons have become pet owners for the first time.
Pet owners typically continue to spend money on their dogs and cats even in a financial downturn.
The firm added that the “balance sheet and liquidity remain strong” despite the challenges posed by the pandemic.
Chief executive Peter Pritchard, who joined in 2018, has been on a mission to transform the business and bolster its website.
Greg Lawless, a retail analyst at broker Shore Capital, said: "We like the Pets strategy that mixes both products and services, together with its online and store model.
"The company has strengthened its value credentials, which is supporting trading momentum."
