Wednesday, PetSmart, Inc. (PETM), a provider of products and services for pets, reported a rise in first-quarter profit as sales increased about 10% from the previous year period. Both earnings and revenues for the quarter came in above analysts' consensus. The company also issued guidance for the second quarter and lifted its outlook for the full year 2009.
The Phoenix, Arizona-based company posted a first quarter net income of $46.3 million or $0.37 per share, compared to $41.2 million or $0.32 per share in the year ago quarter.
On average, 14 analysts polled by Thomson Reuters expected the company to report earnings of $0.30 per share for the quarter. Analysts' estimates typically exclude special items.
Operating income for the quarter increased to $89.9 million from $80.3 million in the prior year.
In the preceding fourth quarter, the company posted a net income of $78.4 million or $0.62 per share.
Net sales for the quarter under review increased 9.5% to $1.33 billion from $1.21 billion in the prior year. Analysts had a consensus revenue estimate of $1.32 billion for the first quarter.
In the fourth quarter, PetSmart reported net sales of $1.36 billion.
Comparable store sales grew 3.9% in the quarter, while comparable transactions, which are used as a proxy for traffic, increased 0.1% from same period last year.
Pet services sales for the quarter increased 10.3% to $142.8 million from the first quarter of previous year.
Commenting on the results Phil Francis, Chairman and Chief Executive Officer said, "With a solid first quarter performance, our results continue to validate the strength of our commitment to providing differentiated solutions at a great value."
Looking ahead, the company said it expects second quarter earnings in the range of $0.26 to $0.30 per share. Analysts currently expect the company to earn $0.30 per share for the second quarter.
Second quarter comparable store sales are expected to grow in the low-single digits.
For fiscal 2009, the company now expects earnings in the range of $1.42 to $1.52 per share. The company previously estimated earnings in the range of $1.40 to $1.50 per share.
Wall Street analysts currently expect the company to report earnings of $1.47 per share for the full year.
The company also maintained its full year comparable store sales growth target of low-single digits and capital spending of $115 million to $125 million. Total sales growth is anticipated in mid-to-high-single digits.
Among others in the industry, retail giant Wal-Mart Stores Inc. (WMT) last week reported a first quarter profit of $3.02 billion or $0.77 per share, compared to income of $3.02 billion or $0.76 per share a year earlier. Revenues declined to $94.24 billion from $94.94 billion last year.
General merchandise and food discount retailer Target Corp. (TGT) reported a first quarter net income of $522 million or $0.69 per share, down from $602 million or $0.74 per share reported a year ago. Total revenues increased marginally to $14.83 billion from $14.80 billion in the prior year.
PETM closed Wednesday's regular trading at $22.30, down $0.64 or 2.79%, on the Nasdaq. After hours, the stock gained $0.55 or 2.47%. In the past 52-week period, the stock has traded in the range of $13.27 - $28.86, with an average 3-month volume of 2 million shares.
For comments and feedback contact: editorial@rttnews.com
May 01, 2026 15:54 ET Central banks dominated the economics news flow this week with almost all major ones announcing their latest policy decisions and many boosted expectations for a rate hike in June. In other news, several countries released the preliminary data for first quarter economic growth. In the U.S., comments by Fed Chair Jerome Powell were also in focus as his term ends this month.