Petsmart 2002 Annual Report Download - page 4

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Our
growth
and strength
continue.
April 28, 2003
Dear Shareholders:
PETsMART proved its strength in 2002.
In a tough climate, we performed
and, building on 2001’s accomplishments,
we completed eight quarters of
positive results. We grew pet services,
completed a state-of-the-art distribution
system, reformatted more of our stores
and continued to build a customer-
focused culture.
We earned $0.63 per share in 2002,
compared to last year’s $0.35. Included
in our 2002 results is a charge of
$13.2 million net of tax, or $0.09 per
share, related to a legal settlement with
former shareholders of Pet City
Holdings. Our topline sales grew to
$2.7 billion and comparable store
sales grew 9.6 percent. Margins were
up 231 basis points—our third
consecutive year of growth—and we
generated $223 million in cash from
operations. Pet services sales grew
29 percent and we reduced inventory
per store by 9 percent.
Those impressive numbers reflect the
work we’ve done to reposition our
strategy and transform the business.
Based on our early results, we think
this is the beginning of a business that
will continue to drive growth and
shareholder value for years to come.
“We accomplished a great deal in 2002, but we’ve only
just begun to explore our potential, and we’re confident
that much of the upside still remains.”
Philip L. Francis,
Chairman and Chief
Executive Officer
Robert F. Moran,
President and
Chief Operating Officer