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Pets at Home profits dogged by margin squeeze

Pets at Home profits dogged by margin squeeze

Despite a 5.5 per cent rise in like-for-like sales at Pets at Home (PETS) over FY2018, underlying pre-tax profits fell 12.3 per cent following a protracted squeeze in merchandise gross margins. The company has suffered due to adverse foreign exchange translations, which has forced a certain amount of price 'repositioning' in its business. New chief executive Peter Pritchard is, however, determined to remain upbeat, claiming that remedial actions are working, more customers are returning to shops, and that returning to profit growth remains a realistic target.

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