Pets at Home has fended off Amazon, the goliath for all bricks and mortar retailers. Its next fight? Convincing the market that the surge in sales recorded during the pandemic isn’t heading for a sharp reversal.
The boom in pet ownership under lockdown spurred shares in the FTSE 250 constituent up more than 50 per cent over the past two years, which including dividends, translates into a total return of almost 60 per cent against the paltry 1 per cent delivered by the index. But since September, the shares have lost 15 per cent in value as investors have become wary of “pandemic winners”.
Yet another profit upgrade should reassure investors that catalysts for the shares to re-rate remain. So too, should a valuation
