PetSmart Q4 and Fiscal Year 2008 Results
PetSmart, Inc. (NASDAQ:PETM) announced $5.07 billion in net sales in 2008, up from $4.67 billion in 2007. Comparable store sales grew 3.8 percent in 2008, and pet services continued to stand out, growing 15.8 percent in 2008 to $526.7 million. The year 2007 had one extra week added to the fiscal year in the fourth quarter.
During the fourth quarter of 2008, pet services sales grew 6.9 percent. Net income for the fourth quarter was $78.4 million, compared to $75.4 million for the fourth quarter of 2007.
PetSmart is the nation's largest pet specialty retailer with over 1,000 stores in the U.S., and announced a more cautious approach to new store openings in 2009, in line with the prevailing mood these days about the rest of this year. In 2008 the company opened just over 100 stores and 45 new PetsHotels, on par with the previous couple of years. For 2009, however, the company plans to open 40 to 42 new stores and 20 new PetsHotels, or about a 60% reduction in new store openings and a 50% reduction on new pet hotels.
These results and the 2009 outlook confirm, in our opinion, that pet spending will be impacted, but to a lesser degree than consumer spending in many other industries.
Read more and listen to the PetSmart, Inc. conference call.