PetSmart finishes with higher fourth-quarter sales
PetSmart Inc.'s (PETM) fiscal fourth-quarter net income rose 4% on higher sales despite an extra week in the year-earlier period, according to an article on www.CNNMoney.com.
However, shares fell 4.9% to US$17.60 in after-hours trading as the pet superstore's fiscal-year forecast was in line with analysts' estimates.
Like other retailers, PetSmart has been hurt by a drop-off in consumer spending as well as by increasing competition from big-box chains, such as Wal-Mart Stores Inc. and Target Corp. The company has slowed its rapid expansion to concentrate on operating improvements and cost savings.
Looking ahead, PetSmart expects fiscal-year earnings of US$1.40 to US$1.50 a share on revenue growth in the mid- to high-single digits. Analysts were looking for earnings of US$1.48 a share on revenue of US$5.24 billion, up 3%.