Petsmart Profits Down From Weak Consumer Spending

Petsmart

Menu Foods is not the only one that is feeling financial troubles lately. On Wednesday, Petsmart cut its third-quarter and 2007 profit forecasts which caused its shares to go down by five percent.

The company stated that weak consumer spending has hurt their bottom line. They also added that profits have gone down due to unusually warm weather which has affected their cold-weather product line.

For the current quarter, Petsmart expects earnings of 17 cents to 20 cents a share. Previously, it forecast 21 cents to 23 cents.

Chief Executive Philip Francis said the pet food recalls would cut Petsmart sales by “some tens of millions of dollars” by the end of the year.

Petsmart expects to have all of the recalled brands back on store shelves by the second quarter of next year.

Source: Reuters

Photo: straydog.org

(Thanks menusux)

18 Responses to “Petsmart Profits Down From Weak Consumer Spending”

  1. Pet » Petsmart Profits Down From Weak Consumer Spending says:

    […] Emily Huh wrote an interesting post today on Petsmart Profits Down From Weak Consumer SpendingHere’s a quick excerptChief Executive Philip Francis said the pet food recalls would cut Petsmart sales by “some tens of millions of dollars” by the end of the year. Petsmart expects to have all of the recalled brands back on store shelves by the second … […]

  2. G in INdiana says:

    It isn’t just the pet food recall that hurt Petsmart. People will feed their dogs and cats something, even if it isn’t one of the recalled brands. Extra spending, which is what most of the people who shop at Petsmart are doing, is down all over due to the fact that the credit markets have dried up. When you can no longer grab your home equity or tap into your credit due to being over extended, you cut what you spend on frivolous crap like dog clothes and play toys.

    People have to spend their money on essentials like heating, food, and their mortgage payments. Even the latter are of lesser importance than food and warmth.

    And notice they didn’t say that Petsmart made NO profit, just that it was less than they expected. That really frosts me since at least they made money. I feel way worse about the smaller pet stores who are losing money due to the housing down turn, credit crunch and pet food scandal.

  3. Lynne says:

    Poisoned pet food and dangerous pet toys… adding live rabbits to their lineup… and profits are down? Well, duh.

  4. nora and rufus says:

    I havn’t been at Petsmart in months because homecooking and daily supplements (Halo Pets) that are for my dogs and cats cannot be purchased there, and all the other products for dogs and cats (toys or grooming) that they carry are made in China and I don’t purchase those any longer. Soooo, no reason to shop Petsmart. Also I was informed by another dog owner at the dog park that when he bought dog food there a couple months ago the register blocked it because it was one of the recalled cans, STILL ON THE SHELF. If that one can was blocked, imagine how many might not get stopped at the register….Sorry Petsmart, that is a chance that we cannot take! I do all my shopping at my local Health Food store (supplements) and a couple specialty pet supply stores that have USA products.(toys and grooming products).

  5. Debi says:

    Hi guys, everything in petsmart is chinese, from the chews to the toys to the reflective lites that the dogs wear on the collars to be seen in the dark. We have also been home-cooking and so far all is well. I hope petsmart goes down with all the other places that sell poison.

  6. Anonymous says:

    Food Safety meeting starting now

    http://energycommerce.house.go.....dule.shtml

  7. Jenny Bark says:

    Nora & Rufus or anybody do you know where I can buy USA toothbrushes for my babies? I need some new ones.

    I will go to Petsmark & Petco next week just to let them know I’m still around. I spent a lot of money with both of them thinking I was buying top brand food for my 5 dogs, 1 cat & helping some of the clients on MOW. I am still very mad at both of them because they never once called or e-mail me about recalls. They had all my information, wanted me to carry & use their cards but didn’t care enough to get in touch with me when my babies where eating poison sold by them. They called me by name when I whent there now they will never get another penny from me. I think I’ll ask them what they have from the USA & then when they show me I’ll ask them where the ingred. are sourced from. I’ll have some fun.

  8. Trudy Jackson says:

    I used to get all My cat toys there, as well as food. but all the toys are made in China. I won’t go back.

  9. Pukanuba says:

    Like all of you, I haven’t been into a Petsmart or Petco much since the recalls. Petsmart was one of the few places I could find refills for my poopie bag holder…..but lately I’ve seen them in other stores. If those are from China, I think that’s just perfect for what I put into them……

    I get all my food now from holistic or health pet stores….may have to travel a little more but it’s well worth it. I just try to pick up more so I won’t have to go as often. Because of all the stuff in Petsmart & Petco from China, I hope they decide to change out their stock or I’ll never buy from them again. Remember Petsmart…..your tennis balls for dogs tested wicked high for lead……& I’ve told everyone I know who buys balls for their dogs. I’m sure those are from China. Smarten up or maybe next year your profits will be down even worse than this year. Oh and by the way, I sure hope you suits at Petsmart don’t really think that pet parents are anxiously awaiting the recalled brands to be put back on shelves. Give me a friggin break…….

    Nora: Where do you get the Halo Pet supplements? I assume they are made in the USA? I’m so afraid of supplements after hearing most come from China. I’m trying to find a healthy one for my dog. I’m even a little afraid of the bonemeal I’m giving her.

  10. Mia says:

    I also buy online and use mostly organic or holistic items for my dog. I also home cook. Do a price comparison on the Halo products . We use the dehydrated salmon and chicken. It goes a long way either as a treat or in the food. HTH because I was not happy with the Petco or Petsmart products.

  11. Jay says:

    There are many reasons never to buy from PetSmart, Petco, or Wal-Mart, but the first for me is that they still purchase from Menu Foods. When those contracts are abolished, then maybe (just maybe) they are starting to get it.

  12. Nora and Rufus says:

    Hi Jenny Bark. Try any of your local Health Food Stores OR Pet food supply stores OR Doggy Boutiques that are not chains. If they don’t have any toothbrushes that are not made in China, possibly the can order some or try human toothbrushes… They would work. Oddly enough, since I started doing home cooking, my dogs teeth are really clean….but my boyfriends older female Huskie mix’s teeth are going to require a little more care (years of him feeding her Old Roy and any other gastly garbage before I arrived on the scene) I guess now I will be challenged to find a toothbrush NOT made in China too!!!! Good Luck.

  13. Katie says:

    Like all of you, I haven’t been in Petco or Petsmart since March. I now home cook, use human vitamins and oils and buy natural treats at the health food store.

    I think Petco and Petsmart are feeling the pain of siding with the PFI. They gladly turned more and more space over to P&G,Mars, etc. pushed the little guy out. They didn’t see the changes in the PFI coming. Because they have been so slow to respond to change, it causes their profits to be down.

    Petco, Petsmart and PFI are paying the price. Pet parents finding out that the so called “high end” was no better than the low cost food at Wal-Mart. Their lies and deceit played out in the press.

    Katie

  14. Jenny Bark says:

    Nora & Rufus, THANKS for the advice. I have looked around here & haven’t found them, I guess i’ll go out & look for human kids toothbrushes. I’m trying so hard to buy everything USA or do without & boy is it hard. I had my dog babies teeth sealed because I had to have them cleaned too often & didn’t like putting them to sleep. I want to keep up with them but boy are my brushes stating to look bad. My perfect Kitty doesn’t like me to brush hers but her teeth are looking a lot better, even the vet said so. I think you are right about the home cooking because of how Kitty’s teeth are looking. I don’t think we will ever know what all kinds of garbage they put in PFI food. I’m home cooking too. Thanks again & a hug to you & yours.

    Anonymous, THANKS for the link on the food safety meeting. I listened to it for a long time & then when the FDA & USDA were on & it was really good I got cut off. I kept trying but couldn’t get it back. Is there any way I can finish watching it? I would really like to see & or hear the rest of it. Thanks again for the link & a hug sent to you & your too.

  15. Louise says:

    Raw chicken necks are excellent for cleaning cats’ teeth. At my local holistic pet food store you can get 5-6 in a package for $4.00. Definitely better than jamming a brush down my baby’s throat.

  16. straybaby says:

    jenny, here’s a USA jr. tooth brush that is also earth friendly ;)

    http://www.recycline.com/products/preservejr.html

    i also use chicken necks along with ox tails and chicken feet for my cats teeth.

  17. Jenny Bark says:

    Louise, THANKS but my Kitty won’t do raw, at least not yet. It has taken us a long time to get 100% on home cooking.

    Straybaby, THANKS i ordered the toothbrushes & it made me feel good to get recycled & USA. Like I posted to Louise my Kitty does not do raw. She doesn’t like fish, except a tiny bit of sardines, no clams, no chicken hearts, giblets or liver. She is a good eater as long as she likes the food. I hate having to give her taurine (human grade) but i have no other choice. One day i woke up to a dead mouse next to my face & Kitty sitting on her tree eating her dry food so i think we have come a long way. I’m not giving up on her so we will just keep trying. I’m happy she is healthy & eating home cooking. Thanks again & a hug to you & yours.

  18. AnneLouise says:

    I’m just here to defend PetsMart. Our local one is wonderful. The employees are well trained and are able to answer questions that are not easily known unless you do some research. They have an adoption center that does a lot of good for this community. When we go after dinner once a week with our 2 jack russells, the place is jumping. Everyone is talking with each other and having a good time. I have owned dogs for 25 years and I am not afraid to do business with these people whatsoever. Don’t judge all stores because of one. No, I do NOT work for PetsMart. Just a satisfied customer.


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