NEW YORK (TheStreet) -- PetSmart Inc. (PETM) has decided to follow in the footsteps of its rival Petco and stop selling cat and dog treats made in China, due to concerns the products are making animals sick, the Associated Press reports.
The FDA has investigated the claims but were not able to prove the treats were causing the illnesses in pets.
However, since 2007 the FDA has received over 4,800 complaints of illnesses in pets and over 1,000 reports of dog deaths after the animals ate chicken, duck, or sweet potato jerky treats made in China, AP said.
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PetSmart said it will have the treats off store shelves by March 2015, while Petco plans to have the treats gone by the end of this year.
Separately, PetSmart stock was down today after the company reported weak guidance for its 2014 second quarter and full year.
Shares of PetSmart closed lower -8.31% to $57.02 on Wednesday.
TheStreet Ratings team rates PETSMART INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate PETSMART INC (PETM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins."