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.
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By Lindsay Beaton