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Petco Reverses Loss, Posts Profit That Beats Forecasts

November 22, 2002|From Reuters

Retailer Petco Animal Supplies Inc. on Thursday posted a profit in the third quarter, boosted by higher sales at stores open at least a year, contrasted with a loss a year ago when it had expenses related to its initial public offering and debt.

Petco, the No. 2 U.S. pet supply specialty retailer after Petsmart Inc., posted net income of $12 million, or 21 cents a share, contrasted with a loss of $17.7 million, or 46 cents a share.

Excluding one-time items, earnings per share rose 75%.

The San Diego-based retailer had forecast earnings of 19 cents to 20 cents a share. Analysts pegged the company at 20 cents, according to research firm Thomson First Call.

Net sales rose $367.5 million in the quarter from $322.9 million a year ago, while sales at stores open at least a year, a key gauge of performance, jumped 8.3%.

The company said it expected earnings of 35 cents to 36 cents in the fourth quarter on a 6% to 7% rise in same-store sales.

For the year, Petco sees earnings before one-time items of 88 cents to 89 cents, with same-store sales up 8%.

Petco has more than 500 stores in 41 states and the District of Columbia.

The company's stock fell 98 cents to close at $24.02 on Nasdaq.

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