PetSmart Tumbles As Management Warns of Challenges Ahead

Shares of PetSmart are down after the pet supplies retailer issued weaker-than-expected guidance for its second quarter. For the current quarter, the company expects comparable-store sales growth flat to slightly negative with profits between $0.92 cents and $0.96 cents a share. Analysts had forecast and average $1 a share. Retail challenges affected its first quarter too, with revenue of $1.7 billion missing estimates by $44 million. A challenging environment is expected to continue through the year, with the company guiding for flat comparable-store sales and earnings as high as $4.39 a share. Analysts had forecast an average $4.45 a share.