Petsmart 2009 Annual Report Download - page 3

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Dear Fellow Stockholders:
We kept our focus in 2009 and delivered solid results, validating the work we began in 2008
to right-size our cost structure, better align our business units, be a better merchandiser and
leverage our customer insights to strengthen our bond with pet parents. Put simply, we entered
the new decade healthy and happy.
Despite a sour economy and weak consumer spending, we delivered strong earnings growth
and positive comparable store sales. We:
• achieved comparable store sales growth of 1.6 percent and increased total sales by 5.4 percent
• more than tripled our quarterly dividend from 3 cents to 10 cents per share and paid $32 million
in dividends
• bought back $165 million of PetSmart stock
• generated $567 million in operating cash  ow
We added 37 net new stores in 2009, ending the year with 1,149 stores and 162 PetsHotels in the
United States and Canada, with plans to open 40 to 42 net new stores and 18 PetsHotels in 2010.
Our pet services business—grooming, pet training, PetSmart PetsHotel and Doggie Day Camp
—continues to set us apart from our competitors and remains a catalyst of customer loyalty.
We achieved total services sales of $575 million, up 9.2 percent from 2008. Grooming remains
strong, while our hotels are beginning to bene t from improved operational ef ciencies and cost
controls in spite of the soft market. Pet Parents continue to entrust their pets to us when they’re in
need of a service or care, a responsibility that humbles us and motivates us to do even better.
One of our proudest achievements in 2009 was the adoption by a loving New Jersey family of
Chloe, a one-year-old Collie mix who became the 4-millionth pet to be adopted from a PetSmart
store. On average, we now adopt one pet for every hour our PetSmart Charities in-store Adoption
Centers are open. Adoptions are the right thing to do and they create additional avenues for us
to build loyalty.
April 19, 2010
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