Petsmart 4Q13 Earnings Call Notes

A digest of some of the top insights that I’ve gathered from this week’s earnings calls.  Full notes can be found here.

20% earnings growth on 1.2% comp growth

“During the fourth quarter, we delivered earnings per share growth of 19.6% on an equivalent 13-week basis versus last year, on comparable store sales growth of 1.2%. The fourth quarter was a challenging one.”

Multi-channel even at a pet-store

“And finally, we have been testing order online, pick up in store, which is the second-most requested feature by our customers. We will begin rolling this out to all of our stores in 2014.”

Weather hits products like grooming

“in December and January we did see much more severe and I would say continual weather. It really kept the customer from coming up for air. And if you think about the categories that affects, we saw an impact in grooming. So if you think about grooming when a customer can’t get to a grooming appointment for a period of time they’re just going to wait for the next one.”

60% of stores affected by weather

‘s we looked at our store base over the last couple months, we’ve seen that over 60% of our stores were affected continually by weather during that time and so it had – and that was a much bigger impact that we have seen in previous winters. So it was a very tough period. Most of our stores were affected.”

Seeing meaningful difference in non-weather affected areas but wont elaborate

“I would tell you that yes we are seeing meaningful differences but I would not quantify it for you.”

Petsmart 1Q13 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

[analyst comment] ” I’m surprised you guys are even on this call because the clients are calling me, telling me you’re about to go bankrupt because of the Internet.”

“In terms of the industry, we think it’s about a 2% to 3% online penetration of the pet industry”

“One is we’re going to with exclusivity and really leveraging this humanization of pets trend to bring human brands into the pet space. So you’re going to see Burt’s Bees in health and beauty. You’re going to see Off in flea and tick. You’re going to Shout in stain and odor.”

“as we looked at the online pet space and as we look at our own business, the categories that do better are the categories that are higher ticket, higher margin and lower weight”

“we’re not seeing that consumer in any very big way move online, and I think we’re going to let that consumer lead us to where we need to be”