PetSmart profit beats estimates, raises FY profit view
(Reuters) - PetSmart Inc's (PETM.O) quarterly earnings beat Wall Street expectations on strong growth in its merchandising business, and the pet products retailer raised its full-year profit forecast for the second time this year.
Shares of the company were up 6 percent in extended trade.
The pet industry has seen rapid growth in recent years, with spending on pets in the United States expected to rise about 3.7 percent to $52.87 billion this year, according to the American Pet Products Association.
PetSmart raised its full-year profit forecast to between $3.30 and $3.40 per share, up from its previous forecast of between $3.19 and $3.31 per share. Analysts were expecting $3.31 per share, according to Thomson Reuters I/B/E/S.
The Phoenix, Arizona-based PetSmart expects to earn between 59 cents and 63 cents in the third quarter, while analysts were expecting a profit of 61 cents per share.
For the second quarter ended July 29, PetSmart earned 71 cents per share, beating analysts' expectations of 66 cents.
Revenue for the quarter, which rose 9 percent to $1.62 billion, was in line with analysts' estimates.
Merchandise sales, which accounts for a majority of the company's sales, rose 9 percent to $1.42 billion.
Wal-Mart Stores Inc (WMT.N) said on Tuesday it is launching its own "ultra premium" dog food to compete directly with specialty chains such as PetSmart and Petco PETC.UL.
Shares of the company, which operates more than 1,249 stores in the United States, Canada and Puerto Rico, rose to $71.50 after the bell. They closed at $67.44 on the Nasdaq on Wednesday.
(Reporting by Arpita Mukherjee in Bangalore; Editing by Supriya Kurane)
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