Petfood and pet supplies retailer PetSmart Inc. reported earnings of US$0.71 per share, up 31 percent compared to US$0.54 per share in the second quarter of 2011. Net income totaled US$79 million in the second quarter of 2012, compared to US$61 million in the second quarter of 2011.
Total sales for the second quarter of 2012 increased 9 percent to US$1.6 billion. The increase in net sales was partially impacted by US$4 million in unfavorable foreign currency fluctuations. Comparable store sales, or sales in stores open at least a year, grew 7.0 percent, benefitting from comparable transactions growth of 2.9 percent. Services sales, which are included in total sales, grew 7 percent to US$191 million.
During the second quarter, the company generated US$104 million in operating cash flow, spent US$35 million in capital expenditures, distributed US$15 million in dividends and repurchased US$47 million of PetSmart stock. The company ended the second quarter with $354 million in cash, cash equivalents and restricted cash, and zero borrowings on its credit facility.
“As a reminder, 2012 contains a 53rd week. For all of 2012, we anticipate comparable store sales growth in the mid-single digit range, and total sales growth in the 10 percent to 11 percent range. We are raising our earnings per share guidance from a previous range of US$3.19 to US$3.31, to our current expectations of US$3.30 to US$3.40. The impact of the extra week is estimated to be US$120 million in sales and US$0.16 in EPS,” said Chip Molloy, executive vice president and chief financial officer. "For the third quarter of 2012, we are expecting comparable store sales growth in the mid-single digit range, and earnings per share between US$0.59 to US$0.63.”
Feature
By Lindsay Beaton
Packaging continues to be a primary way for pet food companies to speak to their customers.
Feature
By Lindsay Beaton
Pet treat trends are largely following pet food trends as pet parents look to bond with their animals.