Soaring Pets at Home Among Leaders of U.K. Market in 2019

(Bloomberg) --

Pets at Home Group Plc is beating Brexit uncertainty and the headache of a general election as Britons keep spending on their animals.

Shares of Pets at Home, which sells products for pets and runs veterinary practices, jumped as much as 11% on Tuesday after the company said it expects full-year results to hit the top-end of expectations. Today’s rally means the shares have doubled this year -- more than recovering from a 51% drop over the prior two years -- and are now among the top five best performers in the FTSE All-Share Index in 2019.

Brick-and-mortar retailers have been under pressure as Brexit uncertainty saps confidence and as shoppers increasingly shift to online options. A survey by GfK last month showed that U.K. consumer confidence slumped to match a six-year low, while baby products merchant Mothercare Plc and travel agent Thomas Cook Group Plc have been among high-profile collapses on the U.K. high street this year.

But pockets of the sector have thrived. In addition to Cheshire-based Pets at Home, sneaker seller JD Sports Fashion Plc and miniatures and collectibles firm Games Workshop Group Plc count among the FTSE All-Share’s best 15 stocks in 2019. Along with clothing bellwether Next Plc, all three stocks are up more than 70% this year.

And analysts are positive on the future for Pets at Home. Tuesday’s results should pave the way for “further profit and cash growth,” according to Numis analyst Simon Bowler. Liberum Capital Ltd.’s Adam Tomlinson also said the earnings growth from the company’s retail stores is “standout” in the current environment.

To contact the reporter on this story: Sam Unsted in London at sunsted@bloomberg.net

To contact the editors responsible for this story: Celeste Perri at cperri@bloomberg.net, Beth Mellor

©2019 Bloomberg L.P.