Pets at Home (PETS) investors will be hoping the UK pet-care leader’s first half results statement (28 November) doesn’t set the cat among the pigeons. Any signs that the cost-of-living pressures impacting pet owners’ disposable income are slowing its sales momentum or curtailing customer acquisition growth could be harshly punished.

Share price weakness at the pet food-to-toys purveyor reflects operational challenges at the retailer’s new distribution centre, which impacted second-quarter growth, as well as an ongoing CMA (Competition and Markets Authority) review into the UK veterinary services market.

The CMA review undoubtedly adds uncertainty, but retail is a much bigger part of the business than veterinary services and Shore Capital says it is ‘unlikely to result in a negative outcome’ for the company. ‘If the CMA concludes that remedies are needed in the sector, Pets at Home appears well-positioned to us as it has already implemented many of the possible measures, such as transparency in pricing,’ says the broker.

Pets at Home delivered strong group like-for-like revenue growth of 7.9% for the first quarter to 20 July and said it continued to acquire new consumers ‘at an impressive rate, as our compelling value, range and service continues to resonate with consumers’. However, Shore Capital subsequently downgraded its year to March 2024 sales and pre-tax profit forecasts to reflect the operational hiccups encountered in Q2.

UK UPDATES OVER THE NEXT 7 DAYS

FULL YEAR RESULTS

November 28: Treatt, Focusrite, EasyJet, Renew Holdings

November 29: Benchmark Holdings

November 30: Genedrive, Auction Technology Group

FIRST HALF RESULTS

November 27: Celebrus Technologies, DSW Capital

November 28: Supreme, Augmentum Fintech, Pets at Home, GB Group, VP, Mercia Asset Management, Kinovo

November 29: Pennon Group

November 30: Dr Martens, Zoo Digital Group, Carclo, SRT Marine Systems

December 1: Mind Gym

TRADING ANNOUNCEMENTS

November 27: Rightmove

November 28: Loungers, Safestore Holdings

November 30: Me Group International

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