(Bloomberg) -- Pets at Home Group Plc reported higher sales as people spend money on cats and dogs they bought during Covid-19 lockdowns despite the growing cost-of-living crisis.
The pet-care company reported a 6% rise in like-for-like revenue growth and said it is still winning over customers even as inflation heads toward double-digits, according to a statement Friday. The shares rose as much as 4% in early London trading, but pared gains to trade roughly flat at 9 a.m.
Sign-ups to the company’s Puppy and Kitten Club, a loyalty program, are averaging 25,000 a week, three times higher than before the pandemic and more than 8,500 people a week are registering with the business’s vets practices. Thousands of pet-owners continue to work at least partly at home and are able to keep caring for the dog or cat they bought for companionship during lockdowns.
Pets at Home said the “non-discretionary nature of our affordable pet care proposition” had helped it retain over one million customers gained last year, who need to return for goods and services to look after their furry companions.
It’s the first results under new Chief Executive Officer Lyssa McGowan who joined the company from Sky UK Ltd in June. The company kept its outlook for the year unchanged with underlying pre-tax profit expected between £127 million ($154 million) and £136 million.
“Such strong momentum, especially against the current backdrop, reflects the strength of Pets’ model,” Adam Tomlinson, an analyst at Liberum, wrote in a note to clients Friday.
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