Agenda: Pets at Home and DFS update the market

Pets at Home

The pets specialist will update the market on its first-quarter performance on Tuesday, August 8.

Pets at Home has had a tough time of late. Morgan Stanley suggested that it “faced a bleak future” ahead of its preliminary results in May and many observers expected a profit warning.

But the retailer surprised the market with sales edging up 0.8% over the full-year, although pre-exceptional pre-tax profits were down 1%.

Investors will be hoping that chief executive Ian Kellett can report more of the same following his decision to lower prices and cut back on promotions.

Kellett will also update on Pets at Home’s progress on its burgeoning services division.

The proposition includes grooming parlours and vet practices – the latter’s earnings rose 25% over the past year. Investors will be hoping that Pets at Home can maintain that sort of trajectory.

DFS

The furniture specialist will issue a post-close update on Thursday, August 10.

DFS’ profit warning at its interims in June will have damaged investor confidence.

This was despite chief executive Ian Filby attributing its sluggish performance to external factors, such as the uncertainty triggered by the snap general election, rather than any internal issues.

Filby vowed that the warning would not affect DFS’ investment plans and instead played down the impact of political uncertainty on the big ticket market, which shrank 5% in May.

However, investors will be looking for more than just bravado at the trading update.