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Non-Tech : PETM - Petsmart -- Ignore unavailable to you. Want to Upgrade?

To: Diamondcutter who wrote (1209)	7/10/1998 12:43:00 PM
From: Anthony Wong	Respond to of 1508

The July 9 Dow Jones article on the warning: Petsmart Warns Fiscal 2nd-Quarter Won't Match Street Hopes July 09, 1998 5:51 PM PHOENIX -(Dow Jones)- Petsmart Inc. warned late Thursday that its second-quarter results will fail to meet analysts' expectations because of higher-than-expected costs and bulging inventories. After the close of U.S. markets Thursday, the retailer of pet food, supplies and services said it expects to post second-quarter results of between breakeven and a loss of two cents a diluted share. Wall Street expects the company to earn two cents a share for the fiscal second quarter, which ends Aug. 2. The company said it incurred unexpected costs, including severance costs for senior management and provisions for legal and settlement costs. The company also has continued its efforts to increase inventory turnover and to reduce North American inventories to optimum levels, which hurt purchasing discounts available to the company and caused a decrease in freight cost leverage. Petsmart said its United Kingdom operations also continue to be hurt by economic uncertainty in that region. The company's North American same-store sales have risen 8% to date in the second quarter, while U.K. same-store sales are about the same as a year ago. Petsmart said that while its North American in-store inventories are lower than a year ago, the composition of merchandise mix is improved and reflects a higher in-stock position. The company said it is confident in its operating performance for the rest of fiscal 1998. Copyright (c) 1998 Dow Jones & Company, Inc. All Rights Reserved.