Pets at Home Group PLC (LSE:PETS) unveiled lower revenue for the third quarter as demand came under pressure in a “more challenging” consumer backdrop.
Group revenue fell by 0.2% to £361.6 million in the three months to January, the pet retailer said on Tuesday, or by 1.0% on a like-for-like basis.
Vet group revenue jumped by 21.3%, as the division’s strong performance was offset by softness in the retail business, Pets at Home noted.
“As widely reported across the consumer sector, [the third quarter] saw a more challenging UK consumer backdrop with particularly weak footfall from October.”
Pets at Home stuck to full-year guidance for “modest growth” in underlying pre-tax profit, though said costs related to changes in distribution would be fully realised this year.
Non-underlying costs of £11 million were expected, against £7 million previously, as the transition from its Stafford to Northampton distribution centre was carried out.
Pets at Home also flagged it would end the year with a “robust balance sheet” after capital expenditure of £55 million and returning £85 million to shareholders.