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PETsMART Inc. Reports Operating Results (10-Q)

November 21, 2012 | About:
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10qk

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PETsMART Inc. (PETM) filed Quarterly Report for the period ended 2012-10-28.

Petsmart Inc. has a market cap of $7.29 billion; its shares were traded at around $68.98 with a P/E ratio of 20.9 and P/S ratio of 1.2. The dividend yield of Petsmart Inc. stocks is 1%. 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 50% to $0.75 on net income of $82.3 million, for the thirteen weeks ended October 28, 2012, compared to diluted earnings per common share of $0.50 on net income of $56.2 million for the thirteen weeks ended October 30, 2011. Diluted earnings per common share were $2.32 and $1.65 for the thirty-nine weeks ended October 28, 2012, and October 30, 2011, respectively.

Net sales increased 8.8% to $1.6 billion for the thirteen weeks ended October 28, 2012, compared to $1.5 billion for the thirteen weeks ended October 30, 2011. The increase in net sales for the thirteen weeks ended October 28, 2012, included a favorable impact from foreign currency fluctuations of $1.1 million. Net sales increased 9.0% to $4.9 billion for the thirty-nine weeks ended October 28, 2012, compared to $4.5 billion for the thirty-nine weeks ended October 30, 2011. The increase in net sales for the thirty-nine weeks ended October 28, 2012, included an unfavorable impact from foreign currency fluctuations of $4.8 million.

Net sales increased 8.8% to $1.6 billion for the thirteen weeks ended October 28, 2012, compared to $1.5 billion for the thirteen weeks ended October 30, 2011. The increase in net sales for the thirteen weeks ended October 28, 2012, included a favorable impact from foreign currency fluctuations of $1.1 million. Approximately 75% of the sales increase is due to a 6.5% increase in comparable store sales for the thirteen weeks ended October 28, 2012, and 25% of the sales increase is due to the addition of 59 net new stores and 6 net new PetsHotels since October 30, 2011.

Net sales increased 9.0% to $4.9 billion for the thirty-nine weeks ended October 28, 2012, compared to $4.5 billion for the thirty-nine weeks ended October 30, 2011. The increase in net sales for the thirty-nine weeks ended October 28, 2012, included an unfavorable impact from foreign currency fluctuations of $4.8 million. Approximately 75% of the sales increase is due to a 7.0% increase in comparable store sales for the thirty-nine weeks ended October 28, 2012, and 25% of the sales increase is due to the addition of 59 net new stores and 6 net new PetsHotels since October 30, 2011.

We recognized license fees and reimbursements for specific operating expenses from Banfield of $9.8 million and $9.4 million during the thirteen weeks ended October 28, 2012, and October 30, 2011, respectively, and $28.5 million and $27.5 million during the thirty-nine weeks ended October 28, 2012, and October 30, 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 $3.2 million, $3.1 million and $3.0 million at October 28, 2012, January 29, 2012, and October 30, 2011, respectively, and were included in receivables, net in the Condensed Consolidated Balance Sheets.

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