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%.
New shelter data casts doubt on whether the pet population and pet ownership are truly growing.
While the pandemic caused unprecedented suffering worldwide in 2020, the disruptions to dogs, cats and other pets adoption numbers may normalize in 2021.