Pet Valu Holdings Inc. reported a boost in revenue for the third quarter, but has revised its full-year outlook downwards due to tougher market conditions and expected actions in the final quarter of the year.
For the third quarter, Pet Valu made a net income of £13.3 million, which is more than they made at the same time last year – £10.2 million.
The company also reported a 5.2% increase in revenue, reaching £160.5 million in the third quarter, which was higher than expected. However, sales from existing stores dropped by 2.5%, and the number of people buying things at stores fell by 4.1%. On the bright side, customers spent 1.7% more on average per transaction, which helped make up for the lower foot traffic.
The Canadian pet retailer, which sells pet food and supplies, now expects full-year revenue to fall between £580 million and £590 million, lowering the upper end of its previous forecast of £600 million. The adjustment was made in light of ongoing market challenges and planned strategies for the fourth quarter.
In addition, the company has reduced its forecast for new store openings, now anticipating 40 locations to be opened this year, within its original range of 40 to 50 stores. Despite these adjustments, Pet Valu expects same-store sales growth to remain flat.
The company also revised its earnings per share (EPS) forecast, now expecting adjusted EPS to fall between £0.90 and £0.91, slightly lower than its previous high-end forecast of £0.93.
Pet Valu’s decision to lower its full-year forecast shows that it’s taking a cautious approach as it prepares for the last months of the year, when they expect more challenges ahead due to the overall economy and market conditions.
