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PETsMART Inc. Reports Operating Results (10-Q)

August 24, 2012 | About:

10qk

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PETsMART Inc. (PETM) filed Quarterly Report for the period ended 2012-07-29.

Petsmart, Inc. has a market cap of $7.72 billion; its shares were traded at around $70.92 with a P/E ratio of 24 and P/S ratio of 1.3. The dividend yield of Petsmart, Inc. stocks is 0.9%. Petsmart, Inc. had an annual average earning growth of 16.7% over the past 10 years. GuruFocus rated Petsmart, Inc. the business predictability rank of 4-star.

Highlight of Business Operations:

Diluted earnings per common share increased 31.5% to $0.71 on net income of $78.5 million, for the thirteen weeks ended July 29, 2012, compared to diluted earnings per common share of $0.54 on net income of $61.2 million for the thirteen weeks ended July 31, 2011. Diluted earnings per common share were $1.57 and $1.15 for the twenty-six weeks ended July 29, 2012, and July 31, 2011, respectively.

Net sales increased 8.9% to $1.6 billion for the thirteen weeks ended July 29, 2012, compared to $1.5 billion for the thirteen weeks ended July 31, 2011. The increase in net sales was partially impacted by $4.1 million in unfavorable foreign currency fluctuations for the thirteen weeks ended July 29, 2012. Net sales increased 9.1% to $3.2 billion for the twenty-six weeks ended July 29, 2012, compared to $3.0 billion for the twenty-six weeks ended July 31, 2011. The increase in net sales was partially impacted by $5.9 million in unfavorable foreign currency fluctuations for the twenty-six weeks ended July 29, 2012.

Net sales increased 8.9% to $1.6 billion for the thirteen weeks ended July 29, 2012, compared to $1.5 billion for the thirteen weeks ended July 31, 2011. The increase in net sales was partially impacted by $4.1 million in unfavorable foreign currency fluctuations for the thirteen weeks ended July 29, 2012. Approximately 80% of the sales increase is due to a 7.0% increase in comparable store sales for the thirteen weeks ended July 29, 2012, and 20% of the sales increase is due to the addition of 52 net new stores and 9 net new PetsHotels since July 31, 2011.

Net sales increased 9.1% to $3.2 billion for the twenty-six weeks ended July 29, 2012, compared to $3.0 billion for the twenty-six weeks ended July 31, 2011. The increase in net sales was partially impacted by $5.9 million in unfavorable foreign currency fluctuations for the twenty-six weeks ended July 29, 2012. Approximately 80% of the sales increase is due to a 7.2% increase in comparable store sales for the twenty-six weeks ended July 29, 2012, and 20% of the sales increase is due to the addition of 52 net new stores and 9 net new PetsHotels since July 31, 2011.

We recognized license fees and reimbursements for specific operating expenses from Banfield of $9.4 million and $9.1 million during the thirteen weeks ended July 29, 2012, and July 31, 2011, respectively, and $18.7 million and $18.1 million during the twenty-six weeks ended July 29, 2012, and July 31, 2011, respectively, in other revenue in the Condensed Consolidated Statements of Income and Comprehensive Income. The related costs are included in cost of other revenue in the Condensed Consolidated Statements of Income and Comprehensive Income. Receivables from Banfield totaled $3.4 million, $3.1 million and $3.1 million at July 29, 2012, January 29, 2012, and July 31, 2011, respectively, and were included in receivables, net in the Condensed Consolidated Balance Sheets.

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