Shares of Chesire-based Pets At Home, the retailer of pet food, pet accessories and veterinary and grooming services, fell about 6% after it said group revenue grew 4.4% to £203.7 million in the 12 weeks to January 5, but merchandise revenues were flat at £177.4 million.
The company’s stock fell to around 224p, giving it a current stock market value of just more than £1 billion.
The firm said strong growth in veterinary services was offset by more subdued trading across the merchandise business.
“Vet services yet again performed strongly this quarter, where our strategy of providing a quality service to clients across both primary opinion and specialist referral centres is delivering results, and is a platform for continuing strong growth,” said Pets At Home CEO Ian Kellett.
“In merchandise, whilst overall sales were softer than anticipated, online grew strongly, reflecting the momentum gained from our investments in seamless shopping …
“With a quarter to go, our profit outlook for the year remains in line with expectations, reflecting both the continued investment in our customer offer and ongoing efficiency initiatives.
“Our focus on becoming more specialist, and doing the right thing for our customers, remains at the forefront of our strategy.”