Petsmart - e-commerce

PetSmart Reports Results for the Fourth Quarter and Fiscal Year 2009
Q4 Earnings of $0.61 per Share; Comp Sales Growth of 1.5 Percent; Total Sales Growth of 3.4 Percent; FY09 Earnings of $1.59 per Share; Comp Sales Growth of 1.6 Percent; Total Sales Growth of 5.4 Percent
PHOENIX, Mar 03, 2010 (BUSINESS WIRE) -- PetSmart, Inc. (NASDAQ: PETM) today reported financial results for the fourth quarter and fiscal year 2009, and provided guidance for 2010.

For the quarter, the company delivered earnings per share of $0.61 and comparable store sales growth of 1.5 percent. Total sales for the quarter were $1.41 billion, up 3.4 percent, including a favorable impact from foreign currency fluctuations of $10.0 million. Services sales, which are included in total sales, increased 8.3 percent to $141.6 million.

For the year, the company delivered earnings per share of $1.59 compared to $1.52 last year. Total sales were $5.34 billion, up 5.4 percent, including an unfavorable impact from foreign currency fluctuations of $8.3 million. Comparable store sales grew 1.6 percent and services sales increased 9.2 percent to $575 million.

During the year, the company generated $567 million in operating cash flow and spent $113 million in capital expenditures. In addition, the company repurchased $165 million of PetSmart stock during 2009, with $80 million repurchased during the fourth quarter. The company also distributed $32 million in dividends during 2009, ending the year with $357 million in cash, cash equivalents and restricted cash and zero borrowings on our credit facility.

"We are pleased to report our results for the fourth quarter, with solid earnings and positive comparable store sales. Improvements in traffic, as well as a strong holiday performance led to better results than expected for the quarter," said Bob Moran, Chief Executive Officer and President. "I'm proud of the hard work our associates deliver each and every day, and as a result I believe we are better positioned for the future than ever before."

2010 Annual Guidance:

"For 2010, we remain cautiously optimistic about the economic climate. While challenges remain in the macro economy, we continue to focus on those things we can control," said Chip Molloy, Senior Vice President and Chief Financial Officer. "For all of 2010, we anticipate low-single digit sales comps, total sales growth in the low- to mid-single digit range and services growth of low- to mid-single digits. We expect earnings per share between $1.73 to $1.83. During the year we expect to spend $125 million to $135 million on capital expenditure projects including growing our square footage 3 percent to 3.5 percent. For the first quarter of 2010, we are expecting comparable store sales of low-single digits and earnings per share of $0.40 to $0.44."

Conference call information

PetSmart management has scheduled a teleconference for 4:30 p.m. EST today to discuss results for the fourth quarter and fiscal year 2009. This teleconference will be webcast live for all investors at www.petm.com or www.streetevents.com. The webcast will be available until the company announces results for the first quarter of 2010. In addition, you can listen to the call live by dialing 866-814-8449 (within the United States and Canada) or 703-639-1368 (for international callers), code 1434382.

A phone replay will be available through April 4, 2010, 11:59 p.m. EDT, at 888-266-2081 in the United States and Canada, or at 703-925-2533 for international callers, code 1434382.

About PetSmart

PetSmart, Inc. is the largest specialty pet retailer of services and solutions for the lifetime needs of pets. The company operates more than 1,149 pet stores in the United States and Canada, 162 in-store PetSmart PetsHotel(R) cat and dog boarding facilities, and is a leading online provider of pet supplies and pet care information (www.petsmart.com). PetSmart provides a broad range of competitively priced pet food and pet products; and offers complete pet training, pet grooming, pet boarding, Doggie Day Camp(SM) pet day care services and pet adoption services. Since 1994, PetSmart Charities, Inc., an independent 501(c)(3) non-profit animal welfare organization, has funded more than $109 million in grants and programs benefiting animal welfare organizations and, through its in-store pet adoption programs, has helped save the lives of more than 4 million pets.