Steady growing

PetsMart reported net income of $44.7 million for the first quarter of 2005. That compares with net income of $31.9 million share, for the first quarter of 2004. Included in the company's 2005 results was a pre-tax gain of $8.5 million, related to a previously disclosed legal settlement. PetsMart generated net sales of $903.2 million in the first quarter, up 13.4 percent from $796.3 million during the same period in 2004. Comparable store sales – or sales in stores open at least a year – grew 5.7 percent in the first quarter, compared with 8.7 percent in the first quarter of fiscal 2004. "In the first quarter of 2005, PetsMart exceeded expectations for both the top and bottom line, demonstrating the power of our business model and our ability to drive growth and expand margins," said Phil Francis, chairman and chief executive officer. During the first quarter, pet services sales were $70.6 million, up 20.8 percent from the same period last year. The company opened 16 new stores and closed two locations during the first quarter of 2005, which compares with 23 new stores and two closures during the first quarter of 2004. At the end of the first quarter of 2005, the company operated 740 stores.