PetSmart Slashes Outlook, PETM Stock Tanks

Its CEO cited 'challenging and volatile' conditions

   

PetSmart Slashes Outlook, PETM Stock Tanks

Shares of PetSmart (PETM) tumbled about 5% in Wednesday morning trading after the pet retailer posted weaker-than-expected quarterly sales and lowered its guidance for the year.

PetSmart185 PetSmart Slashes Outlook, PETM Stock TanksPetSmart said it earned $103.8 million during its fiscal first quarter, up slightly from $102.4 million in the prior-year period. EPS of $1.04 narrowly topped PetSmart’s own prediction of earnings between 99 cents and $1.03 per share, the Wall Street Journal noted.

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During the quarter, PetSmart reported revenue of $1.73 billion, up 1.1% year-over-year. But that fell short of the $1.77 billion that Wall Street had forecast.

PetSmart said that same-store sales fell 0.6%.  PETM President and Chief Executive David Lenhardt said that the retailer had been hurt by “a challenging and volatile consumer environment and a competitive market” during the quarter.

Looking forward, PetSmart trimmed its outlook for the full year. PetSmart had previously estimated a full-year profit of between $4.42 and $4.54 per share. It now anticipates full-year earnings to fall between $4.29 and $4.39 per PETM share.

On Tuesday, PETM stock closed $62.19 per share.

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Article printed from InvestorPlace Media, http://investorplace.com/2014/05/petsmart-slashes-outlook-petm-stock-tanks/.

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