Petsmart Earnings Rise with Help of One-Time Items

Pet supplies retailer Petsmart said after U.S. markets closed Wednesday that its second-quarter net profit rose 36 percent, helped by one-time gains.

Quarterly net income jumped to $47.1 million, or 35 cents per share, from $34.6 million, or 25 cents per share, in the year-ago period.

Petsmart, which had earlier said it was not hurt by the pet food recall that began in March, said sales rose slightly in the quarter to $1.1 billion.

Same-store sales, a key measure of retail strength that tracks sales at stores open at least one year, gained 4 percent in the quarter, compared with an increase of 4.9 percent in the year-ago period.

The Phoenix-based company expects to earn between 21 cents and 23 cents a share in the current quarter, including an impact of 4 cents per share from exiting its State Line Tack business.

Petsmart also forecast fiscal 2007 earnings between $2.08 and $2.10 per share.

Shares of Petsmart were unchanged in post-market trade Wednesday.