PetSmart solidifies top spot in pet retail with earnings surge
PHOENIX — Earnings shot up 39% to 85 cents per share to 61 cents per share at PetSmart during the first quarter as the company continues to dominate the pet retail space. Net income totaled $95 million in the first quarter of 2012, compared with $71 million in the first quarter of 2011.
Total sales for the first quarter of 2012 increased 9.4% to $1.6 billion. The increase in net sales was partially impacted by $2 million in unfavorable foreign currency fluctuations. Comparable-store sales, or sales in stores open at least a year, grew 7.4%, benefitting from comparable transactions growth of 3.3%. Services sales, which are included in total sales, grew 8.3% to $181 million.
“We are pleased to report another quarter of solid earnings growth,” said Bob Moran, chairman and CEO. “Our performance in the first quarter was due to strength across all three merchandising categories, as well as across services, further solidifying our position as the leading pet specialty retailer.”
For fiscal 2012, the company expects comparable-store sales growth in the mid-single digit range, and total sales growth in the 9% to 10% range. PetSmart has also raised its earnings per share guidance from a previous range of $3.02 to $3.16, to its current expectations of $3.19 to $3.31.