PetSmart profit narrowly tops Street; cuts FY view

Pet products retailer PetSmart Inc (PETM.O) posted second quarter profit that narrowly beat expectations but cut its full-year earnings view, sending shares down 10 percent after the bell.

In a conference call with analysts, a company official said that comparable sales for the second half of the year would most likely trail earlier expectations. Gross margins are also expected to more challenged than previously thought.

For the full year, the Phoenix, Arizona-based company now sees earnings of $1.37 to $1.45 a share, down from its earlier forecast of $1.42 to $1.52 a share.

Analysts on average were expecting the company, which offers boarding, grooming and training services for pets, to earn $1.52 for the full year.

Same store sales are now guided to grow in the low single digits in the period.

For the second quarter, the company posted a net profit of $39 million, or 31 cents a share, compared with $37.2 million or 30 cents, in the year ago period.

Net sales for the quarter increased 5.4 percent to $1.31 billion, hurt partially by foreign currency losses of $8.6 million. Sales at stores open at least a year rose 0.8 percent.

Analysts on average were expecting the company, which sells pet-care products to earn 29 cents on sales of $1.32 billion

PetSmart shares were trading at $20.21 after the bell Wednesday, after closing at $22.57 on Nasdaq. link.....