Posted: Thursday, August 20, 2009, 11:37 a.m., EDT

Petsmart Inc. of Phoenix, Ariz., reported its same-store sales for its second quarter ended Aug. 2 increased slightly by 0.8 percent and expects same-store sales to remain flat during its third quarter.

For 2009, the company expects same-store sales growth will be in the low-single digits, while total revenue growth will be in the mid-single digits and service sales growth will be in the mid-to-high single digits.

Petsmart posted net income of $39 million on sales of $1.31 billion for its second quarter, compared to net income of $37.2 million on sales of $1.24 billion in the year-ago period. Revenues were up 5.4 percent, bolstered by a 10.2 percent increase in services sales to $154.2 million from $140 million in the year-ago period. Merchandise sales for the quarter were up about 4.8 percent to $1.15 billion compared to the year-ago period.

Year-to-date, Petsmart posted net income of $85.2 million on sales of $2.64 billion, compared to net income of $78.5 million on sales of $2.45 billion in the year-ago period. Year-to-date, services revenues are up 10.2 percent and merchandise sales are up by about 7 percent.

Petsmart now expects to add up to 42 net new stores for 2009 and 20 PetsHotel in-store boarding facilities.

Petsmart ended its second quarter with 1,145 stores, up from 1,075 stores at the end of the year-ago period. <HOME>