PetSmart Posts Higher Earnings On Strong Services Sales

PetSmart Inc. (Nasdaq; PETM) reported third-quarter earnings on Friday of $92 million, up 12 percent from a year earlier. The Phoenix-based company's net income increased to $92.22 million or $0.88 per share, from $82.32 million or $0.75 per share in the same quarter last year. Comparable-store sales for locations open at least a year grew 2.7 percent. Service sales, which are included in total sales, grew 5.2 percent to $184 million. During the quarter, PetSmart has been experimenting with free or reduced shipping charges for online dog-food orders and has found some success. "We're trying to find that sweet spot that works for us and works for our customers," said David Lenhardt, PetSmart chief executive officer. Story