PetSmart Inc Annual Report

Introduction

PetSmart Inc is the largest US based service provider for pet care and lifetime needs. It was founded in Phoenix (Arizona) in 1987. By the year 2013, the Chief Executive Officer (CEO) Robert F. Moran maintains the company with around 52,000 employees, 1,278 retail stores, and 196 in-store pet hotels with dog and cat boarding accommodations and veterinary services. The vision of the organization sounds as follows: “To provide total lifetime care for every pet, every parent, every time” (PetSmart Inc Home Page, 2013). The home office of PetSmart Inc is placed in 19601 North 27th Avenue, Phoenix, United States. At the same time, the firm also operates in the international market. The geographic area of the company’s operations includes the United States, Canada, and Puerto Rico.

The main activities of PetSmart Inc are focused on retail business and pet services. Retail stores of the company have more than 10,000 products for pets available. Moreover, the pet stores can be accessed online and provide the whole range of “pet supplies and pet care information” for a customer at a computer (PetSmart Inc Home Page, 2013). The services provided for pets comprise “pet adoption, boarding, grooming, training, and day camp”. They are more focused on but not restricted to dog and cat care. Besides, the company closely cooperates (since 1994) with an independent PetSmart Charities Inc, which sponsors animal welfare in North America. PetSmart Inc helps the charity organization through pet boarding programs.

The financial and fiscal year of the company consists of 52 or 53 weeks and ends on the Sunday that is nearest to January 31. In this paper we will analyze years 2011 and 2010, as the company has not released the audited data for the year 2012. The fiscal year 2011 ended on January 29, 2012, and the fiscal year 2010 ended on January 30, 2010. Both 2011 and 2010 were 52-week years.

The annual financial reports of PetSmart Inc for the years 2011 and 2010 have been audited by the independent auditing firm Deloitte & Touche LLP. The company’s auditors issued an unqualified opinion on the PetSmart’s annual reports and internal control procedures applied in the organization. Specialists of the Deloitee & Touche LLP believe that the company’s financial statements are presented in accordance with the US generally accepted accounting principles and reflect its financial position and operations’ results accurately “in all material respects” (2011 Annual Report, 2012).

The company has shown stable growth of income over the last three years, and this has been reflected in the stock prices. Common stocks of the company are traded on the NASDAQ Stock Exchange since July 1993 under the “PETM” Symbol. The most recent stock price of PetSmart Inc has achieved 62.10 US Dollars and fluctuated over the past 52 weeks in the range of 54.20 to 72.75 US Dollars. As for the fiscal year 2012, which ended on February 3, 2013, the company has reported earnings of 3.55 US Dollars per share (compared to 2.55 US Dollars in 2011 and 2.01 US Dollars in 2010). For more information on the current prices of the PetSmart Inc stock see Exhibit 1. PetSmart at NASDAQ Stock Exchange. March 28, 2013.