Below 13% in FTSE 250! Why were actions at home at home today?

Pets at Home Group (LSE: PET) was quoted significantly lower today (March 31). While I write, the Ftse 250 The shares have dropped 13% to 205p, which takes the decrease of four years to 50%. Oh!

Here, I will see what has caused the sale of sales of today, and if I believe that the action is now attractive.

Commercial update

Pets at home is the unique destination of the United Kingdom for pet owners, which offers a wide selection of food, toys and accessories in more than 450 stores.

It also provides cleaning services. My partner likes to pamper his dog in one of the firm's dog spa halls, which means that the shampoo is labe, the cut -off nails, the refreshed breath, the complete works, at a fairly reasonable price.

The firm also offers veterinary attention through its Vets4pet brand, which now represents more than half of the underlying profits.

The culprit of the drop in the price of today's shares was a commercial statement presented by the company. In the 12 months to March 27 (FY25), the underlying profits are expected to be £ 133 million, in line with the consensus of the analysts. However, the orientation for the current year (FY27) was the main problem. Wait for profits before taxes to fall 6% -13% to £ 115m- £ 125m.

Therefore, pet shareholders at home have a weak guide and the probability of obtaining profits for blaming today's depression. Basically, the perspective had less bite than expected.

The United Kingdom's economy attacks again

A problem here is that a “Fund of the United Kingdom consumer challenging and volatile“You are harming your retail pet business. Expect these conditions to continue throughout the year.

We have recently seen this trend with other consumer -oriented companies in the United Kingdom, including Greggs and JD Wetherspoon. Both FTSE 250 actions are also in the crisis.

Another problem marked by pets at home is the increase in costs related to the contributions of greater salary and national insurance. It is estimated that this will cost £ 18 million, while the new packaging regulations, the restoration of variable payment and higher marketing costs will also add pressure.

The action looks cheap

However, not everything is fatality and sadness. The company is accelerating the deployment of new veterinary practices, with plans to deliver at least 10 this year. And he is investing £ 3 million in a new offer of capital insurance, which Will says “Take advantage of our best class consumption data, large customer base and leading brand. ”

Meanwhile, it will make efficiency savings whenever possible to ensure that operating costs increase in no more than 5%. And capital expenses will now return to standardized levels of less than 50 million.

The action already seemed cheap, quoting about 10 times the profits. But now it offers a 6.2%dividend yield, which the company says it remains “engaged” to.

Therefore, there could be a good value that is offered here for contrary investors willing to have a long -term vision of the shares. Much of pessimism could now have a price.

On the other hand, I thought that JD Sports Stock at the beginning of the year and that continues to slide more and more.

Am I tempted to have a bite?

Unfortunately, the economic situation in the United Kingdom is still serious and many pet owners are Skint. Things are not expected to improve soon and there is not much that the company can do about any of this.

Therefore, I am not tempted to buy the shares, even after the fall of two digits today.