PetSmart 1Q profit rises 12 pct, ups 2009 view

PHOENIX, Ariz. (AP) — Pet supplies retailer PetSmart Inc. said Wednesday its first-quarter profit rose 12 percent on higher merchandise and service sales.

The company earned $46.3 million, or 37 cents per share, compared with profit of $41.2 million, or 32 cents per share, during the same period a year prior. Revenue increased 9 percent to $1.33 billion from $1.21 billion. The fiscal 2009 first-quarter ended May 3 and the full year ends in January.

Analysts polled by Thomson Reuters expected profit of 30 cents per share on revenue of $1.35 billion.

PetSmart said its merchandise sales grew 9 percent to $1.18 billion, and pet service sales grew 10 percent to $142.8 million.

Same-store sales, or sales at stores that have been open for at least one year, increased 3.9 percent. Those sales are considered an important measure of retailer health because they show growth at older stores rather than newly opened ones.

Looking ahead, the company the company said it expects second-quarter profit between 26 cents and 30 cents per share. It raised its full-year profit to between $1.42 and $1.52 per share from prior guidance of $1.40 to $1.50 per share, and said it expects mid- to high-single digit sales growth. Meanwhile, annual same-store sales are projected to increase in the low-single digits.

Analysts expect second-quarter profit of 29 cents per share and full-year profit of $1.47 per share.

Shares of PetSmart lost 5 cents to $22.25 in after-hours trading, having fallen 64 cents, or 2.8 percent, to close at $22.30 during the regular trading session.