Pets At Home shares take a bath on subdued festive trading

Pets At Home (Frankfurt: A1XFE7 - news) shares have slumped by nearly 11% after it reported subdued sales of accessories and pet food over the Christmas period.

Like-for-like sales of merchandise - representing most of the group's £204m revenue for the third quarter period - fell 0.5% in the 12 weeks to 5 January.

However, the company's services arm, including its joint venture vet practice, saw growth of 7%.

Chief (Taiwan OTC: 3345.TWO - news) executive Ian Kellett said that in merchandise overall sales "were softer than anticipated" though online grew strongly and its Christmas range did well.

Mr Kellett said the business was focusing on "delivering best value" for customers, adding that its full-year profits outlook remained in line with expectations.

Pets At Home operates more than 400 stores across Britain as well as more than 400 small vet practices.

The business includes Pets At Home outlets as well as specialist high street stores such as Barkers.

Despite the latest slowdown it is still on course to have opened 15-20 stores and 50-60 grooming salons in the current financial year.

Wayne Brown, analyst at Liberum, said the results were disappointing.

He added: "The material slowdown in merchandise reflects the challenges that remain in this division."