8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of earliest event reported: May 18, 2011

PetSmart, Inc.

(Exact Name of Registrant as Specified in Charter)

Delaware	0-21888	94-3024325
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

19601 North 27^th Avenue, Phoenix, Arizona 85027

(Address of Principal Executive Offices) (Zip Code)

(623) 580-6100

(Registrant’s telephone number, including area code)

N/A

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

     On May 18, 2011, PetSmart, Inc. issued a press release announcing its results for the first quarter ended May 1, 2011, entitled “PETSMART REPORTS RESULTS FOR THE FIRST QUARTER 2011.” A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

     The information in this Report on Form 8-K, including the exhibit hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. The information contained herein and in the accompanying exhibit shall not be incorporated by reference into any filing with the Securities and Exchange Commission made by PetSmart, Inc., whether made before or after the date hereof, regardless of any general incorporation language in such filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits:

Exhibit No.	Description
99.1	Press Release entitled “PetSmart Reports Results for the First Quarter 2011,” dated May 18, 2011.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	PetSmart, Inc.
	By:	/s/ J. Dale Brunk
Dated: May 18, 2011		J. Dale Brunk
		Vice President, Deputy General Counsel, and Assistant Secretary

Exhibit Index

Exhibit No.	Description
99.1	Press Release entitled “PetSmart Reports Results for the First Quarter 2011,” dated May 18, 2011.

EX-99.1

Exhibit 99.1

CONTACT:
PetSmart Investor Relations
(623) 587-2025

PetSmart Reports Results for the First Quarter 2011
Q1 Earnings up 33% to $0.61 per Share; Comp Sales of 5.0%; Total Sales up 6.8%; Comp
Transactions of 2.7%

PHOENIX, AZ—(May 18, 2011) — PetSmart, Inc. (NASDAQ: PETM) today reported earnings of $0.61 per share, up 33% compared to $0.46 per share in the first quarter of 2010. Net income totaled $71 million in the first quarter of 2011, compared to $56 million in the first quarter of 2010.

Total sales for the first quarter of 2011 increased 6.8% to $1.5 billion. The increase in net sales was partially impacted by $4 million in favorable foreign currency fluctuations. Comparable store sales, or sales in stores open at least a year, grew 5.0%, benefitting from comparable transactions growth of 2.7%. Services sales, which are included in total sales, grew 9.0% to $167 million.

During the first quarter, the company generated $96 million in operating cash flow, spent $31 million in capital expenditures, distributed $14 million in dividends, and repurchased $102 million of PetSmart stock. The Company ended the quarter with $290 million in cash, cash equivalents and restricted cash and zero borrowings on its credit facility.

“We are pleased to report another quarter of solid earnings growth,” said Bob Moran, Chief Executive Officer and President. “Our performance in the first quarter reflects the continued momentum in our business and represents another step forward on our journey to becoming a best-in-class specialty retailer.”

“For all of 2011, we expect comparable store sales growth in the low- to mid-single digit range, and total sales growth in the mid-single digit range. We are raising our earnings per share guidance from a previous range of $2.23 to $2.35 to our current expectations of $2.32 to $2.42,” said Chip Molloy, Senior Vice President and Chief Financial Officer. “For the second quarter of 2011, we are expecting comparable store sales growth in the mid-single digit range, and earnings per share between $0.47 and $0.51.”

Conference call information
PetSmart management has scheduled a teleconference for 4:30 p.m. EDT on May 18, 2011 to discuss results for the first quarter 2011. This teleconference will be webcast live for all investors at www.petm.com or www.streetevents.com. The webcast will be available until the company announces results for the second quarter of 2011. In addition, you can listen to the call live by dialing 866-253-5757 (within the United States and Canada) or 703-639-1206 (for international callers), code 1525559.

A phone replay will be available through June 18, 2011, 11:59 p.m. EDT, at 888-266-2081 in the United States and Canada, or at 703-925-2533 for international callers, code 1525559.

About PetSmart
PetSmart, Inc. (NASDAQ: PETM) is the largest specialty pet retailer of services and solutions for the lifetime needs of pets. The company employs approximately 48,000 associates and operates more than 1,192 pet stores in the United States, Canada and Puerto Rico, over 184 in-store PetSmart^® PetsHotel^® dog and cat boarding facilities and is a leading online provider of pet supplies and pet care information (http://www.petsmart.com). PetSmart provides a broad range of competitively priced pet food and pet products; and offers dog training, pet grooming, pet boarding, PetSmart Doggie Day Camp^? day care

services and pet adoption services. Since 1994, PetSmart Charities, Inc., an independent 501(c)(3) non-profit animal welfare organization and the largest funder of animal welfare efforts in North America, has provided more than $134 million in grants and programs benefiting animal welfare organizations. Through its in-store pet adoption partnership with PetSmart Charities^®, PetSmart has helped save the lives of more than 4.4 million pets.

Forward-looking statements
This news release contains forward-looking statements concerning our expectations for future performance, including the statements comprising our 2011 guidance. These “forward-looking statements” are based on currently available information, operating plans and projections about future events and trends. They inherently involve risks and uncertainties that could cause actual results to differ materially from those predicted in such forward-looking statements. Such risks and uncertainties include, but are not limited to: changes in general economic conditions; conditions affecting customer transactions and average ticket including, but not limited to, weather conditions or other seasonal events; our ability to compete effectively; disruption of our supply chain; our ability to effectively manage our growth and operations; changes in our cost structure; and changes in the legal or regulatory environment. Undue reliance should not be placed on such forward-looking statements as they speak only as of the date hereof, and we undertake no obligation to update these statements to reflect subsequent events or circumstances except as may be required by law. For additional information on these and other factors that arise when investing in PetSmart, please see our filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K.

Follow PetSmart on Twitter www.twitter.com/PetSmartTLC
Find PetSmart on Facebook www.facebook.com/PetSmart

PetSmart, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except par value)
(Unaudited)

	May 1,			January 30,			May 2,
	2011			2011			2010
Assets
Cash and cash equivalents	$	228,097		$	291,949		$	241,964
Short-term investments		9,761			9,708			—
Restricted cash		61,439			61,439			46,515
Receivables, net		52,802			53,971			47,460
Merchandise inventories		635,354			615,841			596,660
Deferred income taxes		44,999			44,999			36,805
Prepaid expenses and other current assets		72,286			46,022			61,007
Total current assets		1,104,738			1,123,929			1,030,411
Property and equipment, net		1,100,910			1,132,435			1,176,144
Equity investment in Banfield		29,473			42,858			33,924
Deferred income taxes		91,260			96,215			87,148
Goodwill		45,597			44,111			43,667
Other noncurrent assets		36,802			30,672			27,155
Total assets	$	2,408,780		$	2,470,220		$	2,398,449
Liabilities and Stockholders’ Equity
Accounts payable and bank overdraft	$	154,435		$	168,776		$	198,280
Accrued payroll, bonus and employee benefits		114,608			139,359			98,615
Accrued occupancy expenses and deferred rents		60,349			64,328			59,293
Current maturities of capital lease obligations		47,176			45,277			39,462
Other current liabilities		168,690			156,065			142,136
Total current liabilities		545,258			573,805			537,786
Capital lease obligations		515,139			521,552			533,893
Deferred rents		84,704			86,027			89,625
Other noncurrent liabilities		119,693			118,194			103,621
Total liabilities		1,264,794			1,299,578			1,264,925
Stockholders’ Equity:
Preferred stock; $.0001 par value		—			—			—
Common stock; $.0001 par value		16			16			16
Additional paid-in capital		1,238,604			1,222,340			1,169,930
Retained earnings		1,334,534			1,277,803			1,137,466
Accumulated other comprehensive income		8,154			5,380			4,786
Less: Treasury stock		(1,437,322	)		(1,334,897	)		(1,178,674	)
Total stockholders’ equity		1,143,986			1,170,642			1,133,524
Total liabilities and stockholders’ equity	$	2,408,780		$	2,470,220		$	2,398,449

PetSmart, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(in thousands, except per share and store data)
(Unaudited)

	Thirteen Weeks Ended						Thirteen Weeks Ended
	May 1, 2011			%of Sales			May 2, 2010			%of Sales
Merchandise sales	$	1,314,349			88.2	%	$	1,233,595			88.4	%
Services sales		167,096			11.2	%		153,287			11.0	%
Other revenue		8,921			0.6	%		8,271			0.6	%
Net sales		1,490,366			100.0	%		1,395,153			100.0	%
Cost of merchandise sales		919,476			61.7	%		869,842			62.3	%
Cost of services sales		120,554			8.1	%		112,748			8.1	%
Cost of other revenue		8,921			0.6	%		8,271			0.6	%
Total cost of sales		1,048,951			70.4	%		990,861			71.0	%
Gross profit		441,415			29.6	%		404,292			29.0	%
Operating, general and administrative expenses		319,732			21.5	%		301,031			21.6	%
Operating income		121,683			8.2	%		103,261			7.4	%
Interest expense, net		(14,447	)		-1.0	%		(15,343	)		-1.1	%
Income before income tax expense and equity in income from Banfield		107,236			7.2	%		87,918			6.3	%
Income tax expense		(38,906	)		-2.6	%		(33,764	)		-2.4	%
Equity in income from Banfield		2,575			0.2	%		1,438			0.1	%
Net income	$	70,905			4.8	%	$	55,592			4.0	%
Earnings per common share:
Basic	$	0.62					$	0.47
Diluted	$	0.61					$	0.46
Weighted average shares outstanding:
Basic		113,541						117,976
Diluted		115,699						120,382

Stores open at beginning of each period	1,187	1,149
Stores opened during each period	5	14
Stores closed during each period	—	(3	)
Stores open at end of each period	1,192	1,160