PetSmart announces third quarter 2014 results

PetSmart, Inc. announced fiscal results for the third quarter of 2014 last week. The company also provided details on its plans to reduce costs by $200 million through its previously announced profit improvement program. 

Net Sales for the third quarter of 2014 increased 2.6% to $1.7 billion. Services sales grew 6.0% to $195.3 million. 

The company generated $125.3 million in cash flows from operating activities, invested $37.1 million in capital expenditures, distributed $19.4 million in dividends, and made no purchases of PetSmart stock during the quarter. The company ended the quarter with $254.8 million in cash, cash equivilents and restricted cash, and it had no borrowings against its credit facility. 

In the third quarter of 2014, PetSmart announced a profit improvement program designed to fundamentally restructure the cost base of the company as part of a multi-faceted plan to drive future profitability.

As a result of this program, the company expects to fully implement actions by the end of fiscal year 2015 that are expected to result in annual pre-tax cost savings of $200 million. Approximately 60% of the annual savings is expected to be realized in 2015, with the full value realized in 2016. The savings will be realized within both cost of goods sold and operating, general and administrative (OG&A) expenses.

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