Shares in Pets at Home fell nearly 6 per cent despite an impressive performance over the past four months.
The retailer revealed sales jumped 25.7 per cent in the 16 weeks to July 15 to £377.8m as people continued to buy pets during the pandemic.
Profits for the year are expected to come in at £130m – the top end of analyst expectations – a rise of 49 per cent on the previous year.
Sitting pretty: Profits for the year are expected to come in at £130m – the top end of analyst expectations – a rise of 49 per cent on the previous year
But shares fell after bosses said inflation and the ongoing costs associated with the pandemic would put pressure on the business and take £9m out of profits this year. Pets at Home enjoyed a strong period during the pandemic, with stores staying open as an ‘essential’ retailer. A surge in pet ownership also helped the business, which issued profit upgrades during the year.
John Stevens, retail analyst at Peel Hunt, suggested the company’s valuation could now be close to its peak.
He said: ‘A brilliant company in a brilliant sector but the shares now are interesting rather than exciting.’
Shares were down 5.7 per cent, or 28.4p, to 472.6p.
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