Successful business

USA's largest specialty retailer reported second quarter net income of $34.1 million, compared with the second quarter of 2003, when the company reported net income of $28.1 million. Second quarter 2004 results included a tax benefit of approximately $8 million, and a similar amount of various expenses including a charge for the retirement of assets related to store re-lamping, a foreign exchange expense, and an increase in insurance reserves.
Net sales for the second quarter were $806.0 million, compared to $724.9 million for the same period in 2003. Comparable store sales - or sales in stores open at least a year - grew 5.4 percent, on top of 7.9 percent growth in the second quarter of 2003. Pet services sales for the second quarter were $62.1 million, up $11.8 million, or 23.4 percent over the second quarter of last year. Gross margins were 30.4 percent in the second quarter of 2004, up 61 basis points from the same period last year, a result of the continued mix shift toward higher-margin goods. The company opened 19 new stores and closed five locations during the second quarter of 2004, which compares with 16 new stores and four store closures during the second quarter of 2003.