UK's Pets at Home lures back shoppers with lower prices (updated)
UPDATE 2-UK's Pets at Home lures back shoppers with lower prices Adds CEO and CFO comments, shares, graphics, details, and context throughout
By Nithyashree R B
May 27 (Reuters) - Pets at Home's PETSP.L retail sales returned to growth in the fourth quarter and have accelerated since, the British pet retailer said on Wednesday, as its turnaround efforts win back customers.
Following two profit warnings and a major leadership overhaul, the company has been working to turn its struggling retail business, as new CEO James Bailey looks to revive demand and profitability amid tighter veterinary regulations and a subdued retail market.
Bailey said that customers are still going into the shops and are open to spend on discretionary items, adding that new accessory launches later this year could bolster sales further.
Shares in the company, which have fallen 28% over the past year, reversed earlier losses in the session to trade 6% higher by 1055 GMT on Wednesday.
For 2027, the group expects underlying pretax profit to be within market expectations, but said veterinary sales growth would slow to single digits before improving later in the year.
SPENDING ON PETS RESILIENT DESPITE IRAN CRISIS
CFO Sarah Pollard said the group has not seen any negative impact on supplies from the Middle East crisis, and that it was hedged against energy and foreign exchange risks.
Retail consumer revenue rose 2.2% in the fourth quarter, with year-to-date retail sales growth accelerating to the mid-single-digit range.
It, however, reported a slightly lower than expected 30.2% fall in underlying pretax profit for the year ended March 26, as soft retail earnings offset strong growth in its veterinary business.
(Reporting by Nithyashree R B in Bengaluru; Writing by Yadarisa Shabong; Editing by Rashmi Aich and Chiara Rodriquez)
