Pet chain fetches solid sales
Profits at the nation’s largest pet specialty chain surged 26% during the fourth quarter as same-store sales advanced 6.3% and total sales grew 8.1% to $1.5 billion.
“Our third consecutive quarter of accelerating comparable transactions growth as well as a strong holiday performance led to better-than-expected results for the quarter,” said PetSmart president and CEO Bob Moran.
Earnings per share of 77 cents were 26% higher than the same period the prior year and full year and three cents better than analysts expected. Full-year earnings of $2.01 were 26% higher than the prior year. Full-year same-store sales increased 4.8%, which gave the company full year revenue of $5.7 billion with roughly $619 million of that amount coming from the sales of services such as grooming and boarding. PetSmart ended the year with 1,187 stores in the U.S. and Canada and 180 in-store PetsHotel cat and dog boarding facilities.
Going forward, the company is forecasting first quarter same-store sales in the low-to-mid single-digit range and earnings per share of 52 cents to 56 cents, according to CFO Chip Molloy. Full-year same-store sales are forecast at 3% to 4% with earnings per share between $2.23 and $2.35.