PetSmart Posts 12% Jump in Profit

PetSmart posts a 12% jump in first-quarter earnings, beating Wall Street's expectations and raising its full-year forecast.
Author:
Publish date:

Shoppers may be trading down or eliminating purchases for themselves -- but not, apparently, for their pets.

PetSmart

(PETM)

posted a 12% jump in first-quarter earnings, beating Wall Street's expectations and raising its full-year forecast.

During the ,the company earned $46.3 million, or 37 cents a share, compared with $41.2 million, or 32 cents a share, in the year-ago period. Analysts expected earnings of 30 cents.

Sales grew 9.5% to $1.33 billion, as consumers were drawn to PetSmart for its value offers. Wendy Diamond, former judge on the CBS show

Greatest American Dog

and editor in chief of

Animal Fair

magazine says consumers

can save over 50%

if they buy a 40 pound bag of dog food or cat food at PetSmart, compared to purchasing a similar product at a regular store.

The fear has been that shoppers can easily go to

Wal-Mart Stores

(WMT) - Get Report

,

Target

(TGT) - Get Report

or warehouse clubs like

Costco

(COST) - Get Report

to get the same deals -- but with boarding, grooming services and training, PetSmart has few competitors.

The company now expects full-year earnings in the range of $1.42 to $1.52 a share, up from its prior forecast of $1.40 to $1.50 per share. It foresees earnings of 26 cents to 30 cents a share in the second quarter.

Shares of the company rose 2.5% to $22.85 in after-market trading.

Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.