PetSmart, Inc.

October 06, 2005 08:49 ET

PetSmart Updates Estimated Third Quarter and 2005 Results

NEW YORK--(CCNMatthews - Oct 6, 2005) -

During its annual analyst meeting and web cast today, PetSmart, Inc. will update its earnings outlook for the third quarter of 2005 and for the full year.

The company now expects comparable store sales growth to come in slightly below its original 2 to 3 percent forecast for the third quarter and projects comp sales growth at between 2 and 4 percent for the fourth quarter and 3 and 4 percent for all of 2005. PetSmart's earnings per share projection is $0.18 to $0.19 per diluted share for the third quarter and $1.16 to $1.20 for all of 2005.

Included in those estimates are a third-quarter impact of approximately $0.02 per share related to hurricanes Katrina and Rita, and a first-quarter gain of approximately $0.035 per diluted share, related to a legal settlement.

The revised expectations compare with the company's previous estimates of comparable store sales at approximately 4 percent for the year, and diluted earnings per share of approximately $0.21 in the third quarter and $1.25 to $1.26 for the full year, including the legal settlement gain.

"Although we continue to feel quite positive about this business and its long-term strength, we're clearly operating in an uncertain economic environment, and the recent hurricanes had a material short-term impact on our business," said Philip L. Francis, PetSmart chairman and CEO. "We've lost a total of 238 sales days, or at least a half a point of comp sales, to stores closed by the hurricanes, and four stores remain closed. In addition, we believe sticker shock at the gas pump, high home interest rates and general uncertainty mean the consumer is simply shopping less often, and we're losing trips to the car staying in the garage.

"We think these challenges are short term in nature and we continue to be confident that PetSmart is capable of generating an average of 20 percent earnings per share growth over the long term," Francis said. "Our fundamental business model is strong. We're the biggest player in an attractive, growing industry and, with our industry-leading pet services business, our highly productive stores and our powerful new marketing initiatives, we are uniquely positioned to address the challenges in front of us, and to compete, grow, and generate meaningful returns for our shareholders."

The company will web cast the presentation of its annual Analyst Day conference today at 11:00 a.m. Eastern, at The conference will be archived on the web site.

PetSmart will report its third quarter results after the close of the market on Wednesday, November 16 and will host a conference call at 4:30 p.m. (ET) that same day.

PetSmart, Inc., (NASDAQ: PETM) is the largest specialty retailer of services and solutions for the lifetime needs of pets. The company operates more than 770 pet stores in the United States and Canada, a growing number of PetsHotels, as well as a large catalog business and the Internet's leading online provider of pet products and information ( PetSmart provides a broad range of competitively priced pet food and supplies, and offers complete pet training, grooming and adoption services. Since 1994, PetSmart Charities, Inc., an independent 501(c)3 organization, has donated more than $41 million to animal welfare programs and, through its in-store adoption programs, has saved the lives of more than two million pets.

This news release contains forward-looking statements including statements relating to future revenue growth and goals and future business opportunities that involve substantial risks and uncertainties. Such risks and uncertainties include, but are not limited to, general economic conditions and our ability to manage our operations and growth. Actual results and developments may therefore differ materially from those described in this release. For more information about PetSmart, Inc., and risks arising when investing in PetSmart, Inc., you are directed to the company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission.

Contact Information

  • PetSmart, Inc.
    Bruce Richardson, 623-587-2177