PetSmart 3Q results highlight services growth
PetSmart Inc., the nations largest pet specialty retailer, posted higher earnings in its third quarter 2006 results. Net income grew1.9% to $31.7 million on net sales of $1.0 billion, up 14% from the same period in 2005.
Comparable store sales grew 6.8% in the quarter, compared to 2.4% during last year's third quarter. Pet services sales were up 25.4% to $89.7 million.
In earlier conference calls, CEO Phil Francis has said services customers on average spend more money and return to the store more often than others, and that dog grooming is the primary driver of the services-oriented pet parent into the store.
Pet services spending has grown consistently over the last decade. These days, both the busy professional and the empty nester happily spend record amounts of money on dog grooming, boarding and training.
And the aging demographic of American househoulds should continue to drive this trend in the future. Click on the chart to enlarge.