Despite posting a net sales increase for the first quarter of fiscal 2014, PetSmart’s comparable-store sales missed expectations thanks in part, according to president and CEO David Lenhardt, to a challenging and volatile consumer environment and a competitive market. The company has updated its guidance for the full year as a result.
While net sales for the quarter increased 1.1% to $1.7 billion, comparable store sales, or sales in stores open at least one year, including online sales, decreased 0.6%, with comparable transactions falling 2.2%. Services sales, which are included in net sales, grew 4.5% to $200 million.
All was not bad news, however. Earnings of $1.04 per share were up 6.1% compared to $0.98 per share in the first quarter of 2013. Net income increased 1.3% to $104 million, compared to $102 million in the first quarter of 2013.
“We are pleased with the company’s ability to achieve earnings per share growth of 6.1% while continuing to drive earnings before tax margin expansion during the first quarter,” said Lenhardt. “However, we did not achieve our sales goals, which were impacted by a challenging and volatile consumer environment and a competitive market.”
Looking ahead, the company anticipates comparable-store sales for the full year to remain relatively flat, net sales growth in the low-single digits and earnings per share to range between $4.29 and $4.39. For the second quarter, the company anticipates comparable-store sales growth to remain flat or decrease slightly and earnings per share of $0.92 to $0.96.
PetSmart employs approximately 53,000 people and operates more than 1,340 pet stores in the United States, Canada and Puerto Rico, 200 in-store PetSmart PetsHotel dog and cat boarding facilities and is a leading online provider of pet supplies and pet care information.