By a News Reporter-Staff News Editor at Investment Weekly News -- PetSmart, Inc. (NASDAQ: PETM) announced financial results for the first quarter of 2014, and updated guidance for fiscal year 2014. First Quarter Results Earnings of $1.04 per share were up 6.1% compared to $0.98 per share in the first quarter of 2013. Net income increased 1.3% to $104 million, compared to $102 million in the first quarter of 2013.
Net sales for the first quarter of 2014 increased 1.1% to $1.7 billion. Comparable store sales, or sales in stores open at least one year, including online sales, fell 0.6%, with comparable transactions decreasing 2.2%. Services sales, which are included in net sales, grew 4.5% to $200 million.
The company generated $137 million in cash flows from operating activities, spent $32 million in capital expenditures, distributed $20 million in dividends, and repurchased $130 million of PetSmart stock. The company ended the quarter with $301 million in cash, cash equivalents and restricted cash and zero borrowings on its credit facility.
"We are pleased with the company's ability to achieve earnings per share growth of 6.1% while continuing to drive earnings before tax margin expansion during the first quarter," said David Lenhardt, President and Chief Executive Officer. "However, we did not achieve our sales goals, which were impacted by a challenging and volatile consumer environment and a competitive market." Updated Fiscal Year 2014 Guidance Based on the Company's year-to-date results and updated assumptions for the remainder of the year in light of the consumer environment and competitive market, the Company updated its fiscal year 2014 outlook.
Comparable store sales relatively flat
Net sales growth in the low-single digits
Earnings per share between $4.29 to $4.39
Operating cash flow between $600 to $625 million Second Quarter 2014 Guidance Comparable store sales growth flat to slightly down
Earnings per share of $0.92 to $0.96 Conference Call Information PetSmart management has scheduled a teleconference for 10:00 a.m. EDT on May 21, 2014 to discuss results for the first quarter 2014. This teleconference will be webcast live for all investors at www.petm.com. The webcast will be available until the company announces results for the second quarter of 2014. In addition, you can listen to the call live by dialing 866-814-1933 (within the United States and Canada) or 703-639-1365 (for international callers), code 1637996.
Keywords for this news article include: Finance, PetSmart Inc.
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