Pets at Home's share price surged more than 15% in trading yesterday after the retailer surprised the market with a bumper profit increase and stronger than expected like-for-like sales growth for the first half of its financial year.
The results which were issued on 26th November represent the second time in only three months that the retailer has upgraded it's profit expectations which has caused the share price to rise sharply in the period. The company's share price has doubled over the last year.
Management said that they expected full year profits to be towards the top end of market expectations which range from £87 million to £93 million. Retail revenue rose 8.1% year-on-year to £480 million in the first half which was driven by solid results in their veterinary operations which grew by 19.6% over the same period.
Woozle's long/buy recommendation on Pets at Home uncovered evidence of stronger than expected retail revenue growth, increased customer demand, successful promotional efforts, increased demand for pet grooming accessories and services, and benefits from the revamped next day delivery service which was bolstering online sales channels.
Woozle's long idea on Pets at Home has generated more than 20% in the last month and has been one of our best performing stock picks in 2019 where we have held a long/buy recommendation since January 17th.
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