On May 17, PetSmart (NASDAQ:PETM) released Q1 2006 earnings for the period ended April 30.

  • Accounts receivable and inventory growth exceed sales growth, a trend to watch.
  • Sales grew 12% on 16 new store openings, and there was a 3.7% increase in same-store sales.
  • Diluted share count declined 4.8% on share repurchases.

(Figures in thousands except per-share data)

Income Statement Highlights

Avg. Est.

Q1 2006

Q1 2005

Change

Sales

$1,000,000

$1,011,529

$903,150

12%

Net Profit

--

$41,764

$44,709

(6.6%)

EPS

$0.30

$0.30

$0.30

(0.6%)

Diluted Shares

141,088

148,148

(4.8%)

Get back to basics with a look at the income statement.

Margin Checkup

Q1 2006

Q1 2005

Change*

Gross Margin

30.65%

30.93%

(0.28)

Operating Margin

7.38%

8.61%

(1.23)

Net Margin

4.13%

4.95%

(0.82)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q1 2006

Q1 2005

Change

Cash + ST Invest.

$345,870

$396,312

(12.7%)

Accounts Rec.

$31,700

$19,100

66%

Inventory

$405,275

$345,870

17.2%


Liabilities

Q1 2006

Q1 2005

Change

Accounts Payable

$167,801

$159,535

5.2%

Long-Term Debt

$0

$0

N/A

Learn the ways of the balance sheet.

Cash Flow Highlights

Not provided by company. (Boo! Hiss!)

Find out why Fools always follow the money.

Related Companies:

  • Petco (NASDAQ:PETC)
  • Target (NYSE:TGT)
  • Tractor Supply Co. (NASDAQ:TSCO)
  • Amazon.com (NASDAQ:AMZN)
  • PetMed Express (NASDAQ:PETS)

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At the time of publication, Nathan Parmelee had positions in PetSmart. Fool rules are here.