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PetSmart Is Tanking After Management Slashes Its Outlook

Myles Udland   

PetSmart Is Tanking After Management Slashes Its Outlook

Pet supplies retailer PetSmart is tumbling in pre-market trading after cutting its fiscal year 2014 outlook.

PetSmart cut its profit outlook to earnings of $4.29 to $4.39 per share from $4.42 to $4.54, and also slashed its comparable store sales growth outlook to "relatively flat" from up 2% to 4%.

For the first quarter, PetSmart reported earnings per share that beat estimates, while sales grew 1.1% to $1.7 billion, lower than the 3.7% growth analysts had been expecting.

In its earnings press release, PetSmart CEO David Lenhardt said that a, "challenging and volatile consumer environment and a competitive market" held the company back from meeting its sales goals.

PetSmart is down more than 7% in pre-market trading. PetSmart fell 4.7% yesterday amid a tough day for retail stocks.

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