PetSmart reports higher earnings for fourth quarter, fiscal year 2011

Pet product retailer PetSmart Inc. reported its earnings per share rose 18 percent to US$0.91 in the fourth quarter of 2011, while earnings per share rose 27 percent over 2010 to US$2.55 for full-year 2011. 
For the fourth quarter of 2011, PetSmart reported comparable store sales, or sales in stores open for at least one year, grew by 5.5 percent, benefitting by comparable transactions growth of 2.9 percent. Total sales for the fourth quarter of 2011 rose 8 percent to US$1.6 billion, partially impacted by US$1 million in unfavorable foreign currency fluctuations. Services sales, which are included in total sales, grew 11 percent to US$168 million. For the 2011 fiscal year, PetSmart's comparable store sales grew by 5.4 percent, benefitting from comparable transactions growth of 2.5 percent. Total sales for the year rose 7 percent over 2010 to US$6.1 billion, including a favorable impact from foreign currency fluctuations of US$11 million, and services sales grew by 9 percent to US$675 million. During 2011, the company generated US$575 million in operating cash flow and spent US$121 million in capital expenditures. “Based on our fiscal year calendar, 2012 will contain a 53rd week. For all of 2012, we anticipate comparable store sales growth in the 3 percent to 4 percent range, and total sales growth in the 7.5 percent to 8.5 percent range. We expect earnings per share between US$3.02 to US$3.16, and spending for capital expenditures projects to be between US$130 million to US$140 million. 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 first quarter of 2012, we are expecting comparable store sales growth in the low- to mid-single digits range, and earnings per share between US$0.70 to US$0.74.”