Pets at Home third quarter sales a touch better than expected

Pet supplies retailer Pets at Home posted slightly better-than-expected sales for the third quarter, along with a rise in total revenue growth.

For the three months to the end of December, like-for-like sales increased 2.2% compared with the same period the previous year and slightly exceeding analysts’ expectations for a 2.1% rise.

Meanwhile, overall LFL sales of services were up 8.5%, driven by a strong performance in vet and grooming services, while merchandise LFL sales were 1.7% higher.

Pets at Home reported total revenue growth of 7.1% to £195.1m, with merchandise revenue up 5.4% to £177.3m and services revenues up 27.4% to £17.8m.

Chief executive Nick Wood said: “We are pleased with the improved trading momentum in our merchandise business, alongside continued strength in our vet and grooming services.

We are also delighted with our acquisition of one of the UK's leading specialist hospitals, Anderson Moores, which further develops our presence in this important strategic segment of the veterinary market.”

The company said it was on track to deliver its full year 2016 target of opening 20 to 25 Pets at Home stores, five Barkers, 50 to 55 vet practices and 55 to 60 grooming salons.