PetSmart confirmed Tuesday that it plans to explore a potential sale of the company. Several shareholders, led by activist investor Jana Partners, have been pressuring the pet supply retailer to sell itself.
"Notwithstanding our confidence in the company's future prospects...we have decided to explore options to maximize shareholder value, including a potential sale of the company," said PetSmart Chairman Gregory Josefowicz, in a statement.
The company also said second-quarter earnings rose 10 percent from a year ago, to 98 cents per share, beating Wall Street expectations by 5 cents, while net income increased 5 percent from a year ago to $98 million.
PetSmart has a market capitalization of nearly $7 billion.
There is no guarantee the review will lead to a deal and PetSmart could still determine that it would be better off on its own, Reuters reported earlier, citing sources with knowledge of the matter.
Shares of PetSmart rose more than 1 percent in after-hours trading.
PetSmart's likely move marks yet another victory for Jana. The firm, which is run by Barry Rosenstein, has amassed stakes in companies it perceived to be undervalued and successfully pushed them to sell themselves in recent months.