PetSmart Q4 results exceed estimates

Phoenix – Net income at PetSmart inc. inched up 0.4% to a better-than-expected $132.1 million in the fourth quarter, up from $131.5 million in year-ago period. One-time costs associated with profit improvement and the company’s pending $8.7 billion sale to investment firm BC Partners, announced in December 2014, prevented net income from growing further.



Net sales increased 6% to $1.9 billion, from $1.81 billion. Same-store sales growth, including sales from online websites, rose 2.6%.



PetSmart believes it is on track to meet or exceed a cost savings target of $200 million under a profit improvement program launched in the third quarter of fiscal 2014 by the end of fiscal year 2016. Total savings of approximately $6 million were realized during the fourth quarter, due to lower overhead costs associated with the actions undertaken during third quarter 2014. For the fiscal year, total savings associated with these actions totaled approximately $8 million.



The company anticipates incurring a total of approximately $30 million in one-time charges associated with this program. For the fiscal year, PetSmart incurred one-time charges associated with the profit improvement program of approximately $24 million, including approximately $7.9 million during the fourth quarter.



During fiscal 2014, net income totaled $426.1 million, up 2% compared to $419.5 million in fiscal year 2013, Net sales increased 3% to $7.1 billion. Same-store sales growth was up 0.4%.