Pets at Home has downgraded its full-year profit expectations after reporting a “subdued” pet retail market.

The retailer posted a 1.6% rise in its H1 like-for-like revenue to £789.1m, while its underlying pre-tax profit was by 14.1% to £54.5m.

However, Pets at Home said it first half, which covered the six months to 10 October, had been hampered by challenging market conditions that are persisting longer than expected and could continue into the group’s H2 trading period.

As a result, Pets at Home’s growth expectations for the rest of the financial year have been lowered, from previous guidance that was anticipating for an increase of 9% to around £144m.

Pets at Home CEO, Lyssa McGowan, said: “We are operating in an unusually subdued pet retail market which we now expect to continue through H2. We are confident this will be temporary, and growth will return to historical norms with the longer-term attractive outlook for the UK pet care market unchanged.

“The bulk of our investments and peak operational risk are behind us and our market leadership and well invested platform underpin our confidence in continued outperformance.”

Head of equity research at Hargreaves Lansdown, Derren Nathan, added: “The cumulative effect of cost of living increases, plus a sense check on commitments in terms of both time and money, could be making consumers think twice before adding more furry or scaled dependents to their household.

“However, the group’s integrated model is standing it in good stead. It’s winning market share, reaping the benefits of investment in its digital platform, and seeing a strong uplift in performance of it Vets business 18.6% as it serves more of the relatively stable pet population.”

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