PetSmart Inc. (PETM), which is hurting from soft consumer spending, posted a 2% drop in fiscal fourth-quarter net income as its profit margin fell and said it would slow capital spending as it tries to improve performance at its stores.
The nation's largest pet-food and supplies chain said Wednesday that net income for the quarter ended Feb. 3 fell to $75.4 million from $77 million. Earnings per share rose to 59 cents a share from 56 cents a share.
In January, PetSmart slashed its earnings forecast by 13 cents a share to a range of 57 cents to 61 cents a share, blaming weak sales and a challenging retail climate.
The latest results included costs to exit the State Line Tack business. Excluding those costs and an extra week of sales, earnings came to 52 cents a share. Net sales in the latest quarter rose 14% to $1.33 billion, with a $90 million benefit from an extra week of sales.
The latest forecast from analysts polled by Thomson Financial was for earnings, excluding items, of 59 cents a share on revenue of $1.33 billion.
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