Pets at Home Group PLC (LSE:PETS) profits took a hit in its first half after it invested heavily in its shift to digital.
A couple of months later, shareholders will be hoping to reap the rewards of the online investment when it reports third-quarter results on Tuesday 30 January.
In November, the London-listed company confirmed it was developing a digital platform to provide pet owners with access to products and veterinary healthcare.
A new distribution centre was also opened in Stafford to help deal with the new demand from online orders.
In setting all of this up underlying pre-tax profits fell by around 20% to £47.8 million.
Yet, management remained confident in achieving full-year profit guidance of £136 million, arguing that a resilient market and normalisation of distribution costs would lead to an improved second half.
Shares have remained steady since the update, but a positive third quarter could be vital in keeping positive sentiment around the stock.
Trading in the third quarter started well in the first few weeks, with retail sales growing by 4% on a like-for-like basis.
A ‘record’ Halloween and a “good initial sell-through of Christmas ranges” will also have helped, but as for all retailers, strong festive trading will be vital.
Shares are down almost 4% in 2024 trading at 298p.