PetSmart 2Q profit tops Street, lifts outlook

PetSmart 2nd-quarter profit beats analysts' estimates; lifts full-year profit forecast again

Associated Press

PHOENIX (AP) -- PetSmart said Wednesday that its second-quarter net income rose 19 percent as sales of its merchandise and services improved. The pet retailer also boosted its full-year earnings forecast again.

PetSmart Inc. earned $93.4 million, or 89 cents per share, for the period ended Aug. 4. A year earlier it earned $78.5 million, or 71 cents per share.

Analysts surveyed by FactSet expected earnings of 86 cents per share.

Revenue for the Phoenix company increased 6 percent to $1.71 billion from $1.62 billion. This met Wall Street's view.

Revenue at stores open at least a year, a key gauge of a retailer's health, climbed 3.4 percent. This metric excludes results from stores recently opened or closed.

PetSmart now expects full-year earnings of $3.88 to $3.98 per share, up from a prior outlook of $3.82 to $3.94 per share. The company previously raised its 2013 outlook when it reported first-quarter financial results. It still expects revenue to rise 3 percent to 4 percent, which implies $7 billion to $7.03 billion.

Analysts predict full-year earnings of $3.95 per share on revenue of $7 billion.

For the third quarter, the retailer foresees earnings of 83 cents to 87 cents per share. Wall Street is calling for 87 cents per share.

PetSmart has more than 1,301 pet stores in the U.S., Canada and Puerto Rico. It also has more than 196 in-store PetSmart PetsHotel dog and cat boarding facilities.

The company's stock fell $3.03, or 4 percent, to $71.97 in morning trading. Over the past year, the shares have traded between $61.30 and $75.15. The broader market slipped in early trading on more weakness from retailers.

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