Q1 Earnings up 33% to $0.61 per Share; Comp Sales of 5.0%; Total Sales up 6.8%; Comp Transactions of 2.7%
PHOENIX, May 18, 2011 —
PetSmart, Inc. today reported earnings of $0.61 per share, up 33% compared to $0.46 per share in the first quarter of 2010. Net income totaled $71 million in the first quarter of 2011, compared to $56 million in the first quarter of 2010.
Total sales for the first quarter of 2011 increased 6.8% to $1.5 billion. The increase in net sales was partially impacted by $4 million in favorable foreign currency fluctuations. Comparable store sales, or sales in stores open at least a year, grew 5.0%, benefitting from comparable transactions growth of 2.7%. Services sales, which are included in total sales, grew 9.0% to $167 million.
During the first quarter, the company generated $96 million in operating cash flow, spent $31 million in capital expenditures, distributed $14 million in dividends, and repurchased $102 million of PetSmart stock. The Company ended the quarter with $290 million in cash, cash equivalents and restricted cash and zero borrowings on its credit facility.
“We are pleased to report another quarter of solid earnings growth,” said Bob Moran, Chief Executive Officer and President. “Our performance in the first quarter reflects the continued momentum in our business and represents another step forward on our journey to becoming a best-in-class specialty retailer.”
“For all of 2011, we expect comparable store sales growth in the low- to mid-single digit range, and total sales growth in the mid-single digit range. We are raising our earnings per share guidance from a previous range of $2.23 to $2.35 to our current expectations of $2.32 to $2.42,” said Chip Molloy, Senior Vice President and Chief Financial Officer. “For the second quarter of 2011, we are expecting comparable store sales growth in the mid-single digit range, and earnings per share between $0.47 and $0.51.”
Conference call information
PetSmart management has scheduled a teleconference for 4:30 p.m. EDT on May 18, 2011 to discuss results for the first quarter 2011. This teleconference will be webcast live for all investors at www.petm.com or www.streetevents.com. The webcast will be available until the company announces results for the second quarter of 2011. In addition, you can listen to the call live by dialing 866-253-5757 (within the United States and Canada) or 703-639-1206 (for international callers), code 1525559.
A phone replay will be available through June 18, 2011, 11:59 p.m. EDT, at 888-266-2081 in the United States and Canada, or at 703-925-2533 for international callers, code 1525559.