PetSmart: Barking Up the Wrong Tree

PHOENIX (TheStreet) -- In retail these days, it seems you can't have it all.

PetSmart(PETM Quote) reported growth in both its sales and profit in the second quarter, but provided a weaker-than-expected outlook that sent its shares tumbling 7.5% to $20.82 in after-market trading.

Buy Petsmart!: Against the Grain

During the quarter, the pet-store chain's earnings grew 5% to $39 million, or 31 cents a share, compared with $37.2 million, or 30 cents a share, in the year-ago period. Analysts expected earnings of 29 cents a share.

Sales jumped 5% to $1.31 billion, while total same-store sales inched up 0.8%.

Looking ahead, the company expects to post third-quarter earnings between 20 cents and 24 cents a share and full-year profit in the range of $1.37 and $1.45 a share. Both projections fall short of Wall Street's current targets. Analysts were looking for EPS of 26 cents for the third quarter and $1.53 for the year.

-Reported by Jeanine Poggi in New York.