Easing Lockdown Pet Craze Sends Dechra Down Most in Three Years

(Bloomberg) -- As pandemic restrictions ease in some countries, the lockdown love for pets might also be on the wane. 

Dechra Pharmaceuticals Plc slumped as much as 10% in London Monday, the most since 2018, after noting a recent marginal decline in veterinary practice visits by U.S. pet owners. The drugmaker for animals had been boosted during the pandemic as people stuck at home sought furry companions and became more conscious of their welfare.

Dechra’s warning is the latest indication that so-called “lockdown winners” may face earnings pressure as people socialize and travel more freely following the rollout of Covid-19 vaccinations. 

Last week, pet products retailer Chewy Inc. sank as its sales outlook and guidance disappointed, while other pandemic beneficiaries such as takeout delivery group Just Eat Takeaway.com N.V. and home fitness firm Peloton Interactive Inc. have also been hit following quarterly updates amid elevated expectations. 

Liberum analyst Alistair Campbell said Dechra’s pandemic-driven earnings boost is now “more than fully in the price,” and recommends clients sell shares. The stock was down 6.8% to 4,738 pence as of 10:03 a.m. in London.

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