(Reuters) -Britain’s Pets at Home Group cut its full-year profit forecast on Tuesday after its retail business saw growth below expectations, with customers limiting spending on accessories for their pets.
The group, which also offers grooming and veterinary services, said it expects underlying profit before tax to be about 132 million pounds ($167.5 million) for the year, compared with its previous target of about 136 million pounds.
Pet ownership, which surged during the pandemic lockdowns when people worked from home, fuelled demand for the company’s veterinary services and food products.
However, customers are more cautious about discretionary spending for their furry companions, amid an uncertain economic environment.
The company posted 3.7% rise in retail revenue on a like-for-like basis and exited the third quarter with a clean inventory position.
“While a slower market over peak meant our sales growth didn’t quite hit the levels we expected, the business remains well positioned to benefit from long term growth in the sector,” Chief Executive Lyssa McGowan said in a statement.
($1 = 0.7883 pounds)
(Reporting by Radhika Anilkumar in Bengaluru; Editing by Savio D’Souza and Dhanya Ann Thoppil)
