PHOENIX — Even in a tough economy, consumers are reluctant to cut back spending on their pets, as was made clear by PetSmart's whopping 32% growth in earnings and strong sales performance during the third quarter.
The retailer reported reported earnings of 50 cents per share, up 32% compared with 38 cents per share in the third quarter of 2010. Net income totaled $56 million in the third quarter of 2011, compared with $46 million in the third quarter of 2010.
The company reported that total sales for the third quarter of 2011 increased 8% to $1.5 billion. Comparable-store sales, grew 6.1%, benefiting from comparable transactions growth of 2.2%, according to PetSmart.
“The favorable momentum that we experienced during the quarter validates the work that we are doing, and continues to move us forward on our journey to becoming a best-in-class specialty retailer,” said Bob Moran, president and CEO.
In light of its impressive third-quarter results, PetSmart said it is raising its full year earnings per share guidance from a previous range of $2.46 to $2.52 to $2.50 to $2.54. The company is expecting a full-year comps increase in the mid-single digits.
For the fourth quarter, the company said it expects comparable-store sales growth in the low- to mid-single digit range and earnings per share between 85 cents and 89 cents.