Exhibit 99.1

PETsMART, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share and store data)
(Unaudited)

	Thirteen Weeks Ended						Thirteen Weeks Ended						Fifty-Two Weeks Ended						Fifty-Two Weeks Ended
	Jan 30, 2005			% of Sales			Feb 1, 2004 (1)			% of Sales			Jan 30, 2005			% of Sales			Feb 1, 2004 (1)			% of Sales
Net sales	$	934,304			100.00	%	$	840,032			100.00	%	$	3,363,452			100.00	%	$	2,993,115			100.00	%
Cost of sales		631,295			67.57	%		573,434			68.26	%		2,328,252			69.22	%		2,095,164			70.00	%
Gross profit		303,009			32.43	%		266,598			31.74	%		1,035,200			30.78	%		897,951			30.00	%
Operating, general and administrative expenses		190,531			20.39	%		170,594			20.31	%		754,221			22.42	%		660,972			22.08	%
Operating income		112,478			12.04	%		96,004			11.43	%		280,979			8.35	%		236,979			7.92	%
Interest expense, net		(4,683	)		-0.50	%		(3,561	)		-0.42	%		(16,535	)		-0.49	%		(15,892	)		-0.53	%
Income before income tax expense		107,795			11.54	%		92,443			11.00	%		264,444			7.86	%		221,087			7.39	%
Income tax expense		39,169			4.19	%		35,822			4.26	%		93,216			2.77	%		85,685			2.86	%
Net income	$	68,626			7.35	%	$	56,621			6.74	%	$	171,228			5.09	%	$	135,402			4.52	%
Basic earnings per share	$	0.47					$	0.40					$	1.19					$	0.96
Diluted earnings per share	$	0.46					$	0.38					$	1.14					$	0.92
Weighted average number of shares outstanding — basic		144,627						142,583						143,888						141,641
Weighted average number of shares outstanding — diluted		150,098						148,241						149,652						147,255
Stores opened during each period		24						9						92						67
Stores closed during each period		—						—						(9	)					(7	)
Stores open at end of each period		726						643						726						643

(1) As restated for lease accounting corrections.

PETsMART, Inc. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
Unaudited

	January 30,			February 1,
	2005			2004
				(as restated)
Assets
Cash and cash equivalents	$	87,032		$	92,535
Short-term investments		313,575			235,275
Receivables, net		27,123			17,044
Merchandise inventories		337,281			309,140
Deferred income taxes		13,839			3,327
Prepaid expenses and other current assets		41,068			30,726
Total current assets		819,918			688,047
Property and equipment, net		699,262			582,033
Investments		33,526			33,694
Deferred income taxes		64,952			73,569
Goodwill, net		14,422			14,422
Intangible assets, net		2,369			2,621
Other noncurrent assets, net		18,115			13,874
Total assets	$	1,652,564		$	1,408,260
Liabilities and Stockholders’ Equity
Accounts payable and bank overdraft	$	130,320		$	128,303
Accrued payroll and employee benefits		86,626			73,058
Accrued occupancy expenses		34,927			27,922
Current maturities of capital lease obligations		6,585			4,657
Other current liabilities		89,573			110,132
Total current liabilities		348,031			344,072
Capital lease obligations		244,150			165,738
Deferred rents and other noncurrent liabilities		109,389			100,804
Total liabilities		701,570			610,614
Stockholders’ Equity:
Common stock; $.0001 par value;		15			14
Additional paid-in capital		792,400			705,265
Deferred compensation		(14,444	)		(6,658	)
Retained earnings		286,380			132,544
Accumulated other comprehensive income		1,618			1,458
Treasury stock		(114,975	)		(34,977	)
Stockholders’ equity		950,994			797,646
Total liabilities and stockholders’ equity	$	1,652,564		$	1,408,260

The financial information furnished with this filing reflects lease accounting corrections as well as a reclassification of Auction Rate Securities as described below. These corrections had no impact on the Company’s previously reported cash flows, sales or comparable store sales, or on its compliance with any financial covenant under its bank credit facility.

Lease Accounting Corrections

On February 7, 2005, the Office of the Chief Accountant of the Securities and Exchange Commission (“SEC”) issued a letter to the American Institute of Certified Public Accountants clarifying the SEC staff’s interpretation of certain accounting issues and their application under accounting principles generally accepted in the United States of America (“GAAP”) relating to leases. As a result, PETsMART has conducted an internal review, consulted with its independent registered public accounting firm and determined that certain of its lease accounting methods were not in accordance with GAAP.

The Company’s audit committee and management discussed these accounting matters with the Company’s independent registered public accounting firm and, at a meeting on March 1, 2005, concluded that restatements of financial statements for prior fiscal years and periods would be required. On March 2, 2005, the Company filed a Form 8-K stating that it expected to restate its previously issued financial statements for the fiscal years ended February 2, 2003 and February 1, 2004, and for the quarters ended May 2, 2004, August 1, 2004 and October 31, 2004 to correct its method of accounting for certain leases and that the historical financial statements as well as related reports of its independent registered public accounting firm for the periods identified above and for prior periods should no longer be relied upon.

Rent holiday periods

The Company had historically recognized rent holiday periods on a straight-line basis over the lease term commencing with the store opening date. The corrected method of accounting includes in the lease term all periods in which the company has the right to control the use of the property, including construction and set-up periods prior to the store opening.

Rent increases

Many of the Company’s leases have rent escalation provisions based on a factor of the Consumer Price Index (CPI) with specified maximum increase amounts. These leases have historically been accounted for under the FASB’s Statement of Financial Accounting Standard (“SFAS”) No. 29, Determining Contingent Rentals, which provides that probability-based contingent rentals should be expensed as incurred. However, in connection with the Company’s internal review of its lease accounting practices, the Company determined that in almost all cases, these leases reach their maximum rate increase and should therefore be accounted for on a straight-line basis.

The primary effect of the correction of the accounting for rent holiday periods and rent increases is to accelerate the recognition of rent expense and to increase deferred rent liability balances. In situations where the affected lease is a capital lease, the correction may increase the capital lease asset and the related obligation, as well as the amount of interest and depreciation expense recognized in the consolidated statements of operations.

Leasehold improvement amortization

When accounting for leases with renewal options, the Company had previously depreciated certain assets over a period that, in some instances, extended beyond the initial lease term and into one or more option periods. Amortization for these assets should have been recognized over the initial lease term unless the renewal of an option period had been determined to be “reasonably assured” as that term is contemplated by SFAS No.13, “Accounting for Leases.” The primary effect of the leasehold improvement correction is to accelerate the recognition of leasehold improvement amortization.

Tenant improvement allowances

The Company had historically accounted for tenant improvement allowances as reductions to the related leasehold improvement asset on the consolidated balance sheets and capital expenditures in investing activities on the consolidated statements of cash flows. Management determined that FASB Technical Bulletin No. 88-1, “Issues Relating to Accounting for Leases,” requires these allowances to be recorded as deferred rent liabilities on the consolidated balance sheets and as a component of operating activities on the consolidated statements of cash flows.

In addition to the lease corrections outlined above, and as a result of its lease accounting review, the Company corrected the classification of certain items in its balance sheets and statements of operations to conform with SEC guidelines.

Auction Rate Securities Correction

In February 2005, based on discussions with its independent registered public accounting firm, the Company determined that investments in Auction Rate Securities (“ARS”) should be classified as short-term investments. Previously, such investments had been classified as cash and cash equivalents. ARS generally have long-term maturities; however, these investments have characteristics similar to short-term investments because at predetermined intervals, generally within 28 to 49 days of the purchase, there is a new auction process. The Company reclassified investments in ARS as of January 30, 2005 and February 1, 2004 that were previously included in cash and cash equivalents to short-term investments.

Following is a summary of the effects of the changes for lease and ARS accounting on the Company’s consolidated balance sheets as of January 30, 2005 and February 1, 2004 as well as the effects of these changes on the Company’s consolidated statements of operations for the fiscal years ended January 30, 2005 and February 1, 2004 and for the quarters ended January 30, 2005 and February 1, 2004. See the “Statement of Utility” following the tables below for an explanation of why the Company believes that inclusion of certain non-GAAP financial information in this summary is useful for investors.

	Consolidated Statements of Operations
(in thousands, except per share data)			(unaudited)
Fifty-two weeks ended January 30, 2005	Before Adjustments		Adjustments			As Adjusted (1)
Cost of sales	$	2,318,972	$	9,280		$	2,328,252
Gross profit		1,044,480		(9,280	)		1,035,200
Operating, general and administrative expenses		756,709		(2,488	)		754,221
Operating income		287,771		(6,792	)		280,979
Interest expense, net		16,157		378			16,535
Earnings before income tax expense		271,614		(7,170	)		264,444
Income tax expense		95,752		(2,536	)		93,216
Net income		175,862		(4,634	)		171,228
Basic earnings per common share	$	1.22	$	(0.03	)	$	1.19
Diluted earnings per common share	$	1.18	$	(0.03	)	$	1.14
Thirteen weeks ended January 30, 2005
Cost of sales	$	628,939	$	2,356		$	631,295
Gross profit		305,365		(2,356	)		303,009
Operating, general and administrative expenses		190,510		21			190,531
Operating income		114,855		(2,377	)		112,478
Interest expense, net		4,850		(167	)		4,683
Earnings before income tax expense		110,005		(2,210	)		107,795
Income tax expense		39,950		(781	)		39,169
Net income		70,055		(1,429	)		68,626
Basic earnings per common share	$	0.48	$	(0.01	)	$	0.47
Diluted earnings per common share	$	0.47	$	(0.01	)	$	0.46

(1) This column represents the balances as reported in the consolidated statement of operations for the fifty-two weeks and thirteen weeks ended January 30, 2005, which has been prepared in accordance with accounting principles generally accepted in the United States of America.

	Consolidated Statements of Operations
(in thousands, except per share data)	(unaudited)
	As Previously
Fifty-two weeks ended February 1, 2004	Reported		Adjustments			As Restated (1)
Cost of sales	$	2,083,181	$	11,983		$	2,095,164
Gross profit		909,934		(11,983	)		897,951
Operating, general and administrative expenses		666,006		(5,034	)		660,972
Operating income		243,928		(6,949	)		236,979
Interest expense, net		16,096		(204	)		15,892
Earnings before income tax expense		227,832		(6,745	)		221,087
Income tax expense		88,283		(2,598	)		85,685
Net income		139,549		(4,147	)		135,402
Basic earnings per common share	$	0.99	$	(0.03	)	$	0.96
Diluted earnings per common share	$	0.95	$	(0.03	)	$	0.92
Thirteen weeks ended February 1, 2004
Cost of sales	$	569,770	$	3,664		$	573,434
Gross profit		270,262		(3,664	)		266,598
Operating, general and administrative expenses		173,194		(2,600	)		170,594
Operating income		97,068		(1,064	)		96,004
Interest expense, net		3,612		(51	)		3,561
Earnings before income tax expense		93,456		(1,013	)		92,443
Income tax expense		36,212		(390	)		35,822
Net income		57,244		(623	)		56,621
Basic earnings per common share	$	0.40	$	(0.00	)	$	0.40
Diluted earnings per common share	$	0.39	$	(0.00	)	$	0.38

(1) This column represents the balances as reported in the consolidated statement of operations for the fifty-two weeks and thirteen weeks ended February 1, 2004, which has been prepared in accordance with accounting principles generally accepted in the United States of America.

	Consolidated Balance Sheets
(in thousands)	(unaudited)
January 30, 2005	Before Adjustments		Adjustments			As Adjusted (1)
Cash and cash equivalents	$	400,607	$	(313,575	)	$	87,032
Short-term investments		—		313,575			313,575
Receivables, net		26,541		582			27,123
Current deferred income taxes		12,615		1,224			13,839
Prepaid expenses and other current assets		42,972		(1,904	)		41,068
Property and equipment, net		677,263		21,999			699,262
Noncurrent deferred income taxes		39,116		25,836			64,952
Other non-current assets		18,658		(543	)		18,115
Total assets		1,605,370		47,194			1,652,564
Accrued occupancy expenses		34,639		288			34,927
Current maturities of capital lease obligations		7,697		(1,112	)		6,585
Other current liabilities		91,847		(2,274	)		89,573
Capital lease obligations		225,630		18,520			244,150
Deferred rents and other noncurrent liabilities		31,474		77,915			109,389
Total liabilities		608,233		93,337			701,570
Retained earnings		332,523		(46,143	)		286,380
Total stockholders’ equity		997,137		(46,143	)		950,994
Total liabilities and stockholders’ equity		1,605,370		47,194			1,652,564

	As Previously
February 1, 2004	Reported		Adjustments			As Restated
Cash and cash equivalents	$	327,810	$	(235,275	)	$	92,535
Short-term investments		—		235,275			235,275
Receivables, net		16,628		416			17,044
Current deferred income taxes		2,876		451			3,327
Prepaid expenses and other current assets		31,198		(472	)		30,726
Property and equipment, net		577,182		4,851			582,033
Noncurrent deferred income taxes		47,463		26,106			73,569
Other non-current assets		13,661		213			13,874
Total assets		1,376,695		31,565			1,408,260
Accrued occupancy expenses		27,971		(49	)		27,922
Current maturities of capital lease obligations		4,964		(307	)		4,657
Other current liabilities		105,518		4,614			110,132
Capital lease obligations		165,738		—			165,738
Deferred rents and other noncurrent liabilities		31,988		68,816			100,804
Total liabilities		537,540		73,074			610,614
Retained earnings		174,053		(41,509	)		132,544
Total stockholders’ equity (2)		839,155		(41,509	)		797,646
Total liabilities and stockholders’ equity		1,376,695		31,565			1,408,260

(1)	This column represents the balance as reported in the consolidated balance sheet as of January 30, 2005, which has been prepared in accordance with accounting principles generally accepted in the United States of America.
(2)	The cumulative effect of the restatement for all years prior to fiscal 2003 was $37.4 million, which was recorded as an adjustment to opening stockholders’ equity at February 2, 2003.

Statement of Utility

Although PETsMART has provided all information as of January 30, 2005 and for the fifty-two weeks then ended (“fiscal 2004”) in accordance with GAAP, it believes that evaluating its financial results may be difficult if an investor is limited to reviewing only GAAP financial measures, due to the magnitude of the impact of the accounting changes discussed above. Accordingly, PETsMART is also including non-GAAP financial measures that exclude the effect of changes to lease accounting and the auction rate securities correction discussed above. PETsMART also has used the non-GAAP financial measures of its performance included herein internally to evaluate its operations and financial condition.

PETsMART’s management does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. PETsMART presents such non-GAAP financial measures in reporting its financial results to provide investors with an additional tool to evaluate PETsMART’s operating results and financial condition in a manner that is consistent with results previously reported for prior periods.

PETsMART’s management believes it is useful for itself and investors to review both the GAAP information for fiscal 2004, and the non-GAAP statement of operations and balance sheet data for fiscal 2004 excluding the changes to lease accounting and the auction rate securities correction, to have a better understanding of the overall performance of PETsMART’s business and its ability to perform in subsequent periods. Accordingly, PETsMART has included such non-GAAP financial measures under the columns labeled “Before Adjustments” in the “Consolidated Statement of Operations” and “Consolidated Balance Sheets” tables included above for fiscal 2004.

Management believes that the inclusion of these non-GAAP financial measures provides consistency and comparability with past reports of financial results and better enables investors to evaluate the ongoing operations and prospects of PETsMART by providing a better comparison to previously reported results for prior periods. Whenever PETsMART uses such a non-GAAP financial measure, its strives where possible to provide a reconciliation of non-GAAP financial measures to the most closely applicable GAAP financial measure, as is done in the tables above.