PETsMART Inc. (PETM, Financial) filed Quarterly Report for the period ended 2009-08-02.
PETSMART INC. is a leading operator of superstores specializing in pet food supplies and services in the United States. Petsmart Inc. has a market cap of $2.66 billion; its shares were traded at around $21.12 with a P/E ratio of 13.4 and P/S ratio of 0.5. The dividend yield of Petsmart Inc. stocks is 1.9%. Petsmart Inc. had an annual average earning growth of 29.3% over the past 10 years. GuruFocus rated Petsmart Inc. the business predictability rank of 3.5-star.
Services sales, which are included in the net sales amount discussed above and include grooming, training, boarding and day camp, increased 10.2%, or $14.2 million, to $154.2 million for the thirteen weeks ended August 2, 2009, compared to $140.0 million for the thirteen weeks ended August 3, 2008. Services sales represented 11.8% and 11.3% of net sales for the thirteen weeks ended August 2, 2009, and August 3, 2008, respectively. The increase in services sales is primarily due to continued strong demand for our grooming services, and the addition of 70 net new stores and 35 new PetsHotels since August 3, 2008.
Net sales increased $181.5 million, or 7.4%, to $2.6 billion for the twenty-six weeks ended August 2, 2009, compared to $2.5 billion for the twenty-six weeks ended August 3, 2008. The increase in net sales was partially impacted by $16.5 million in unfavorable foreign currency fluctuations during the twenty-six weeks ended August 2, 2009. Approximately 70% of the sales increase is due to the addition of 70 net new stores and 35 new PetsHotels since August 3, 2008, and 30% of the increase is due to a 2.3% increase in comparable store sales for the twenty-six weeks ended August 2, 2009. The increase in comparable store sales was due to the impact of key merchandising and pricing strategies, partially offset by economic conditions and the slowdown in consumer spending, primarily in our hardgoods category. A decrease in the number of transactions represented (0.2)% of the comparable store sales growth in the twenty-six weeks ended August 2, 2009, compared to (2.0)% in the twenty-six weeks ended August 3, 2008. An increase in the average sales per transaction represented 2.5% of the comparable store sales growth in the twenty-six weeks ended August 2, 2009, compared to 5.4% in the twenty-six weeks ended August 3, 2008.
Services sales, which are included in the net sales amount discussed above and include grooming, training, boarding and day camp, increased 10.2%, or $27.6 million, to $297.0 million for the twenty-six weeks ended August 2, 2009, compared to $269.4 million for the twenty-six weeks ended August 3, 2008. Services sales represented 11.3% and 11.0% of net sales for the twenty-six weeks ended August 2, 2009, and August 3, 2008, respectively. The increase in services sales is primarily due to continued strong demand for our grooming services, and the addition of 70 net new stores and 35 new PetsHotels since August 3, 2008.
We have a $350.0 million five-year revolving credit facility, or Revolving Credit Facility, which expires on August 15, 2012. Borrowings under the Revolving Credit Facility are subject to a borrowing base and bear interest, at our option, at a banks prime rate plus 0% to 0.25% or LIBOR plus 0.875% to 1.25%. We are subject to fees payable to lenders each quarter at an annual rate of 0.20% of the unused amount of the Revolving Credit Facility. The Revolving Credit Facility also gives us the ability to issue letters of credit,
which reduce the amount available under the Revolving Credit Facility. Letter of credit issuances under the Revolving Credit Facility are subject to interest payable to the lenders and bear interest of 0.875% to 1.25% for standby letters of credit or 0.438% to 0.625% for commercial letters of credit. As of August 2, 2009, we had no borrowings and $34.1 million in stand-by letter of credit issuances under our Revolving Credit Facility.
Read the The complete ReportPETM is in the portfolios of Richard Aster Jr of Meridian Fund, John Hussman of Hussman Economtrics Advisors, Inc., Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc.
PETSMART INC. is a leading operator of superstores specializing in pet food supplies and services in the United States. Petsmart Inc. has a market cap of $2.66 billion; its shares were traded at around $21.12 with a P/E ratio of 13.4 and P/S ratio of 0.5. The dividend yield of Petsmart Inc. stocks is 1.9%. Petsmart Inc. had an annual average earning growth of 29.3% over the past 10 years. GuruFocus rated Petsmart Inc. the business predictability rank of 3.5-star.
Highlight of Business Operations:
Net sales increased $66.8 million, or 5.4%, to $1.3 billion for the thirteen weeks ended August 2, 2009, compared to $1.2 billion for the thirteen weeks ended August 3, 2008. The increase in net sales was partially impacted by $8.6 million in unfavorable foreign currency fluctuations. Approximately 85% of the sales increase is due to the addition of 70 net new stores and 35 new PetsHotels since August 3, 2008, and 15% of the sales increase is due to a 0.8% increase in comparable store sales for the thirteen weeks ended August 2, 2009. The increase in comparable store sales was due to the impact of key merchandising and pricing strategies, partially offset by economic conditions and the slowdown in consumer spending, primarily in our hardgoods category. A decrease in the number of transactions represented (0.5)% of the comparable store sales growth in the thirteen weeks ended August 2, 2009, compared to (1.7)% in the thirteen weeks ended August 3, 2008. An increase in the average sales per transaction represented 1.3% of the comparable store sales growth in the thirteen weeks ended August 2, 2009, compared to 5.7% in the thirteen weeks ended August 3, 2008.Services sales, which are included in the net sales amount discussed above and include grooming, training, boarding and day camp, increased 10.2%, or $14.2 million, to $154.2 million for the thirteen weeks ended August 2, 2009, compared to $140.0 million for the thirteen weeks ended August 3, 2008. Services sales represented 11.8% and 11.3% of net sales for the thirteen weeks ended August 2, 2009, and August 3, 2008, respectively. The increase in services sales is primarily due to continued strong demand for our grooming services, and the addition of 70 net new stores and 35 new PetsHotels since August 3, 2008.
Net sales increased $181.5 million, or 7.4%, to $2.6 billion for the twenty-six weeks ended August 2, 2009, compared to $2.5 billion for the twenty-six weeks ended August 3, 2008. The increase in net sales was partially impacted by $16.5 million in unfavorable foreign currency fluctuations during the twenty-six weeks ended August 2, 2009. Approximately 70% of the sales increase is due to the addition of 70 net new stores and 35 new PetsHotels since August 3, 2008, and 30% of the increase is due to a 2.3% increase in comparable store sales for the twenty-six weeks ended August 2, 2009. The increase in comparable store sales was due to the impact of key merchandising and pricing strategies, partially offset by economic conditions and the slowdown in consumer spending, primarily in our hardgoods category. A decrease in the number of transactions represented (0.2)% of the comparable store sales growth in the twenty-six weeks ended August 2, 2009, compared to (2.0)% in the twenty-six weeks ended August 3, 2008. An increase in the average sales per transaction represented 2.5% of the comparable store sales growth in the twenty-six weeks ended August 2, 2009, compared to 5.4% in the twenty-six weeks ended August 3, 2008.
Services sales, which are included in the net sales amount discussed above and include grooming, training, boarding and day camp, increased 10.2%, or $27.6 million, to $297.0 million for the twenty-six weeks ended August 2, 2009, compared to $269.4 million for the twenty-six weeks ended August 3, 2008. Services sales represented 11.3% and 11.0% of net sales for the twenty-six weeks ended August 2, 2009, and August 3, 2008, respectively. The increase in services sales is primarily due to continued strong demand for our grooming services, and the addition of 70 net new stores and 35 new PetsHotels since August 3, 2008.
We have a $350.0 million five-year revolving credit facility, or Revolving Credit Facility, which expires on August 15, 2012. Borrowings under the Revolving Credit Facility are subject to a borrowing base and bear interest, at our option, at a banks prime rate plus 0% to 0.25% or LIBOR plus 0.875% to 1.25%. We are subject to fees payable to lenders each quarter at an annual rate of 0.20% of the unused amount of the Revolving Credit Facility. The Revolving Credit Facility also gives us the ability to issue letters of credit,
which reduce the amount available under the Revolving Credit Facility. Letter of credit issuances under the Revolving Credit Facility are subject to interest payable to the lenders and bear interest of 0.875% to 1.25% for standby letters of credit or 0.438% to 0.625% for commercial letters of credit. As of August 2, 2009, we had no borrowings and $34.1 million in stand-by letter of credit issuances under our Revolving Credit Facility.
Read the The complete ReportPETM is in the portfolios of Richard Aster Jr of Meridian Fund, John Hussman of Hussman Economtrics Advisors, Inc., Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc.
