Pets at Home has lowered its profit guidance for the year.

The pet specialist, which has stores in Cheltenham, Gloucester and Cirencester, saw group sales fall 1.9% to £435m in the 16 weeks to July 17, as reported by Retail Gazette.

A 6.2% growth in the vet business offset a 3% fall in Pets at Home's retail division.

Pets at Home it was revising down its guidance due to 'subdued retail market growth rates' and expects to end the year with an underlying pre-tax profit of £110m to £120m.

Despite the fall in sales, the retailer said its gross margins had been resilient, with the business remaining price competitive while mitigating the £20m hit from changes to National Insurance.

Digital sales returned to double-digit and subscriptions were also up during the first quarter, now representing 14.5% of consumer revenue.

Pets at Home said it is on track to meet its target of at least 10 store openings and 15 extensions in this financial year.