PetSmart Inc. reported earnings of US$0.98 per share, up 15 percent compared to US$0.85 per share in the first quarter of 2012. Net income totaled US$102 million in the first quarter of 2013, compared to US$95 million in the first quarter of 2012.
Total sales for the first quarter of 2013 increased 5 percent to US$1.7 billion, partially impacted by US$2 million in unfavorable foreign currency fluctuations. Comparable store sales, or sales in stores open at least a year, grew 3.5 percent, benefitting from comparable transactions growth of 0.8 percent. Services sales, which are included in total sales, grew 5.8 percent to US$192 million.
During the first quarter, the company generated US$147 million in cash flows from operating activities, spent US$35 million in capital expenditures and repurchased US$180 million of PetSmart stock. The company ended the quarter with US$324 million in cash, cash equivalents and restricted cash, and zero borrowings on its credit facility.The company expects comparable store sales growth in the range of 3-4 percent and earnings per share between US$0.82 to US$0.86.
“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 percent-4 percent, and total sales growth of 3 percent-4 percent. We are raising our earnings per share guidance from a previous range of US$3.76 to US$3.92, to our current expectations of US$3.82 to US$3.94,” said Chip Molloy, executive vice president and chief financial officer.
As an industry, are we missing a huge opportunity to take advantage of another aspect of the human-pet bond?
Read more of Dr. Mukund Parthasarathy's insights on the changing petfood retail market and how it affects petfood manufacturers large and small
Now is the time for packagers, producers, marketers and manufacturers to capitalize on the traveling with pets trend
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