Petsmart 2006 Annual Report Download - page 21

the Gap, Inc. from 2003 to 2005, and Senior Vice President of Global Logistics from 2000 to 2003. Prior to 1999,
Mr. O’Leary held positions at Mothercare and Bhs(UK), Coopers & Lybrand and BP International.
Francesca M. Spinelli joined PetSmart as Senior Vice President of People in September 2003. She served as Vice
President of People for Radio Shack Corporation from 1998 to 1999, and Senior Vice President of People from 1999 to
2003. Previously, Ms. Spinelli was with Wal-Mart Stores, Inc., where she held the positions of Corporate Vice
President, Organizational Development and Vice President, Human Resources — McLane Company, Inc., a former
division of Wal-Mart. Prior to 1993, Ms. Spinelli held human resources positions with Dillashaw, Hawthorn and
Company, P.C., and APS, Inc. In addition, Ms. Spinelli serves on the board of directors of Advance Auto Parts, Inc.
Raymond L. Storck was appointed Vice President of Finance and Chief Accounting Officer effective April
2006. He joined PetSmart in May 2004 as Vice President and Controller. From 2000 to 2004, Mr. Storck served as
Chief Financial Officer and Treasurer of MicroAge, Inc., an information technology products and services
company, and from 1986 to 2000 he held various other executive positions at MicroAge, including Vice President
and Controller. Prior to MicroAge, he was with Grant Thornton.
Item 1A. Risk Factors
In the normal course of business, our financial position is routinely subjected to a variety of risks, including
market risks associated with store expansion, investments in information systems, international expansion, vendor
reliability, competitive forces and government regulatory actions. Our actual results could differ materially from
projected results due to some or all of the factors discussed below. You should carefully consider the risks and
uncertainties described below, as well as those discussed in Competition, Our Stores, Distribution and Government
Regulation sections of this Annual Report on Form 10-K.
Comparable store sales growth may decrease as stores grow older. If we are unable to increase sales at our
existing stores, our results of operations could be harmed.
We can make no assurances that our stores will meet forecasted levels of sales and profitability. As a result of
new store openings in existing markets, and because older stores will represent an increasing proportion of our store
base over time, our comparable store sales increases may be lower or could decrease in future periods.
Store development may place increasing demands on management and operating systems and may erode
sales at existing stores. If we are unable to successfully reformat existing stores and open new stores, our
results of operations could be harmed.
We currently operate stores in most of the major market areas of the United States and Canada. Our plans for
fiscal 2007 include opening approximately 100 net new stores, primarily in existing multi-store markets, opening
approximately 35 new PetsHotels and completing the refresh of a portion of our existing stores. The increased
demands placed on management by our store development could result in operational inefficiencies and less
effective management of the business and associates, which could in turn adversely affect our financial perfor-
mance. Opening new stores may attract some customers away from other stores already operated by us in those
markets and diminish their sales.
Our ability to be successful with our store development efforts is dependent on various factors including:
• Identifying store sites that offer attractive returns on our investment;
• Competition for those sites;
• Successfully negotiating with landlords and obtaining any necessary governmental, regulatory or private
approval;
• Timely construction of stores; and
• Our ability to attract and retain qualified store personnel.
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