Compared to other retail verticals, Christmas is relatively less important to the pet care market. Nevertheless, UK market leader Pets at Home (PETS) will need to reassure investors that retail like-for-like sales momentum has been sustained when it bounds in with a third-quarter trading update on 30 January.

Liberum Capital doesn't expect any reporting surprises, although the broker does remain ‘concerned around the slip we notice in store standards’ at the FTSE 250 retail name, which reiterated guidance for the year to March 2024 at the first half results on 28 November. At the time, the pet food-to-vet services purveyor said the consumer environment remained ‘uncertain’.

Yet Pets at Home stressed its sales growth had normalised after a short-term revenue hit from distribution centre disruption which affected product availability. The early weeks of the third quarter started well with ‘good initial sell-through’ of Christmas ranges and the company expressed confidence in delivering annual underlying pre-tax profits of around £136 million, in line with the analyst consensus supported by cost reductions and veterinary services outperformance.

The next big catalyst for the shares, up more than 100% over five years but down over 10% on a one-year view, should be the Competition & Markets Authority’s initial findings from its review of the UK veterinary services market, likely to see the light of day in early 2024.

UK UPDATES OVER THE NEXT 7 DAYS

FULL-YEAR RESULTS

29 January: British American Tobacco

30 January: Vodafone, SThree

31 January: Abrdn Private Equity Opportunities Trust, GSK

1 February: Shell

INTERIMS

30 January: Diageo

31 January: ITM Power

1 February: Rank Group

TRADING ANNOUNCEMENTS

26 January: Record, Paragon Banking, WH Smith

30 January: Pets at Home, Luceco

1 February: Cranswick, JTC, Barr (A.G.)

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