PetSmart, Inc. (NASDAQ: PETM) today announced financial results for the fourth quarter and fiscal year 2013, and provided guidance for 2014. Fourth quarter 2013 was a 13-week quarter, and fiscal year 2013 was a 52-week year. Fourth quarter 2012 was a 14-week quarter, and fiscal year 2012 was a 53-week year. In 2012, the extra week represented an additional $126 million in net sales, $48 million in gross margin, $18 million in OG&A, $30 million in earnings before tax, and $0.17 in earnings per share. For comparative purposes, the fourth quarter and fiscal year results are discussed on an equivalent 13-week and 52-week basis, respectively.
Fourth Quarter Results (13 weeks versus 13 weeks)
Earnings of $1.28 per share were up 19.6% compared to $1.07 per share in the fourth quarter of 2012. Net income increased 14.0% to $132 million in the fourth quarter of 2013, compared to $115 million in the fourth quarter of 2012.
Net sales for the fourth quarter of 2013 increased 2.9% to $1.8 billion. Comparable store sales, or sales in stores open at least one year plus internet sales, grew 1.2%. Services sales, which are included in net sales, grew 2.6% to $186 million.Fiscal Year Results (52 weeks versus 52 weeks) For the year, the company delivered earnings per share of $4.02, up 18.9% compared to $3.38 last year. Comparable store sales grew 2.7%. Net sales for the year were $6.9 billion, up 4.3%. The company generated $615 million in cash flows from operating activities, spent $147 million in capital expenditures, distributed $54 million in dividends, and repurchased $464 million of PetSmart stock. The company ended the quarter with $357 million in cash, cash equivalents and restricted cash and zero borrowings on its credit facility. “We are pleased to report our results for fiscal year 2013, marking the fourth consecutive year of double-digit earnings per share growth,” said David Lenhardt, Chief Executive Officer. “I would like to thank our associates for their hard work and caring for our customers and communities.”