Petsmart’s Profit Jumps 23% in Q3

Phoenix-based pet specialty retailer Petsmart Inc. reported net income of $45.6 million on net sales of $1.4 billion in the third quarter ended Oct. 31, compared with net income of $38.1 million on net sales of $1.3 billion in the year-ago period.

"We are pleased to report another quarter of solid earnings growth," said Bob Moran, CEO and president of Petsmart. "During the quarter, our performance remained strong as we continued to execute on our strategic priorities by providing innovative and differentiated products, services and solutions to our pet parents."

The increase in net sales was partially impacted by $3.1 million in favorable foreign currency fluctuations, Petsmart stated.

Comparable store sales—sales in stores open at least one year—increased 5.6 percent. Chip Molloy, senior vice president and CFO, said the company is raising its full-year comp store sales expectations to mid-single digits. For the fourth quarter, he said the company expects comp store sales of mid-single digits.

Third quarter comparable transactions, which are used as a proxy for traffic, grew 3.6 percent. Services sales, which are included in total sales, increased 8.5 percent to $148 million.

Petsmart opened 10 stores and closed two during the quarter, ending with 1,172 stores.

For the first nine months, Petsmart reported net income of $150 million on net sales of $4.2 billion, compared to net income of $123 million on net sales of $3.9 billion for the first nine months of 2009.