Petfood and pet supplies retailer PetSmart Inc. reported earnings of US$0.71 per share, up 31 percent compared to US$0.54 per share in the second quarter of 2011. Net income totaled US$79 million in the second quarter of 2012, compared to US$61 million in the second quarter of 2011.
Total sales for the second quarter of 2012 increased 9 percent to US$1.6 billion. The increase in net sales was partially impacted by US$4 million in unfavorable foreign currency fluctuations. Comparable store sales, or sales in stores open at least a year, grew 7.0 percent, benefitting from comparable transactions growth of 2.9 percent. Services sales, which are included in total sales, grew 7 percent to US$191 million.
During the second quarter, the company generated US$104 million in operating cash flow, spent US$35 million in capital expenditures, distributed US$15 million in dividends and repurchased US$47 million of PetSmart stock. The company ended the second quarter with $354 million in cash, cash equivalents and restricted cash, and zero borrowings on its credit facility.
“As a reminder, 2012 contains a 53rd week. For all of 2012, we anticipate comparable store sales growth in the mid-single digit range, and total sales growth in the 10 percent to 11 percent range. We are raising our earnings per share guidance from a previous range of US$3.19 to US$3.31, to our current expectations of US$3.30 to US$3.40. The impact of the extra week is estimated to be US$120 million in sales and US$0.16 in EPS,” said Chip Molloy, executive vice president and chief financial officer. "For the third quarter of 2012, we are expecting comparable store sales growth in the mid-single digit range, and earnings per share between US$0.59 to US$0.63.”