PetSmart raises guidance following Q2 results

PHOENIX — PetSmart’s total sales for the quarter ended Aug. were $1.7 billion, up 5.3% from $1.6 billion for the prior-year period, showing that people are still spending money on their pets despite lingering economic challenges and cautious shopping behavior trends evident in other sectors.

Comparable-store sales, or sales in stores open at least a year, grew 3.4%, benefitting from comparable transactions growth of 1%. Services sales, which are included in total sales, grew 7.3% to $205 million.

The company reported earnings of $0.89 per share, up 25% compared to $0.71 per share in the second quarter of 2012. Net income totaled $93 million in the second quarter of 2013, compared to $79 million in the second quarter of 2012.

“We are pleased with our results and level of execution in the second quarter,” said CEO David Lenhardt. “Our performance demonstrates the continued strength and stability of our business model, and what we can achieve when we focus on caring for our customers.”

“As a reminder, the annual guidance for 2013 is for 52 weeks versus 53 weeks in 2012. For fiscal year 2013, we anticipate comparable store sales growth of 3% to 4%, and total sales growth of 3% to 4%. We are raising our earnings per share guidance from a previous range of $3.82 to $3.94, to our current expectations of $3.88 to $3.98,” said Carrie Teffner, SVP and CFO. "For the third quarter of 2013, we are expecting comparable store sales growth in the 3% to 4% range, and earnings per share between $0.83 and $0.87.”

PetSmart has approximately 53,000 employees and operates more than 1,301 pet stores in the United States, Canada and Puerto Rico, more than 196 in-store PetSmart PetsHotel dog and cat boarding facilities and is a leading online provider of pet supplies and pet care. It provides a broad range of competitively priced pet food and pet products, and offers dog training, pet grooming, pet boarding, PetSmart Doggie Day Camp day care services and pet adoption services.