PETCO Leadership Team Reviews Performance and Strategies at Annual Meeting
June 03 2004 - 2:57PM
PR Newswire (US)
PETCO Leadership Team Reviews Performance and Strategies at Annual
Meeting * Highlights Strong Financial and Operational Results SAN
DIEGO, June 3 /PRNewswire-FirstCall/ -- PETCO Animal Supplies, Inc.
(NASDAQ:PETC) today updated shareholders on its 2003 financial and
operational performance and reviewed strategic plans and outlook
for 2004. (Logo:
http://www.newscom.com/cgi-bin/prnh/20030603/PETCOLOGO ) Speaking
at the Company's Annual Meeting of Shareholders, Chief Executive
Officer James Myers noted that through its first quarter 2004 PETCO
has delivered comparable store sales increases of 5% or greater in
44 of the past 45 quarters, an impressive track record extending
more than 11 years. In fiscal 2003, total sales increased to $1.65
billion, representing an increase of 12% over the prior year. Sales
of services including grooming and canine education achieved total
annual growth of 22% in 2003, again establishing the segment as the
fastest growing of PETCO's businesses. Operating income increased
substantially to $138 million, or 8.3% of sales. Overall, strong
comparable store sales and expanding margins drove a significant
increase in net earnings. Net sales for PETCO during first quarter
2004 increased 13.7% to $425.9 million with a comparable store
sales increase of 6.3%. This strong revenue growth drove a 42%
increase in net earnings over the prior year quarter. "PETCO's
exceptional performance is a reflection of our leading market
position in a consistently growing $28 billion industry," Myers
said. "Positive demographic forces and our business model's track
record of operational excellence position us well for continued
strong growth." Store Enhancements, Expansion Plans In fiscal 2003,
the Company opened 54 net new stores and created more than 100 new
"Millennium"-format stores through the combination of new stores
and remodels. This brought the total number of stores in the
"Millennium" format to more than 200. The Company ended fiscal 2003
with 654 stores, and the first quarter of 2004 with 669 stores in
44 states and the District of Columbia. In fiscal 2004, the Company
plans to continue with its strategic store remodel program and
update approximately 50 stores to the latest format. In addition,
PETCO plans to open 90 new stores, or, 70 net new stores after
relocations and store closings. "We believe there is significant
room for additional growth as we continue onward to our target
store count of 1,250 total community based stores," Myers said.
Animal Care Initiatives The Company noted its dedication to
continually raising animal care standards within the industry by
educating both associates and customers. Included in its ongoing
initiatives are: * Providing award-winning training to all store
associates * Conducting hourly walks with comprehensive checklists
to further ensure the well being of animals * Designing
high-quality habitats around the well-being of companion animals *
Appointing a Director of Veterinary Medicine, who has reviewed all
animal care protocols and habitats * Ensuring that every store has
an associated veterinarian working with it so that any animal
requiring vet care receives appropriate treatment * Creating an
industry-leading vendor certification program under which
inspection teams ensure that PETCO's animal care standards are met
at each of the Company's vendor partner facilities * Development of
an Animal Care Advisory Board that will help the Company to
continue raising the bar for animal care standards within the
industry Community Animal Welfare Support PETCO emphasized the
importance of the PETCO Foundation, the Company's non-profit
charity, which in fiscal 2003 raised and donated more than $3.6
million to animal welfare groups around the country. Since
inception in 1999, the Foundation has raised more than $17 million,
which has supported more than 2,000 grassroots animal welfare
organizations. When devastating firestorms ravaged Southern
California last year, PETCO and the PETCO Foundation provided
truckloads of food, supplies and temporary housing for animals
forced from their homes. "Customers instinctively brought all kinds
of animals, including the barnyard variety, to PETCO stores, where
our animal-loving associates provided free care and safekeeping.
Many store associates volunteered their time at a number of
temporary shelters where families were stranded for up to a week.
These actions demonstrate PETCO's community focus and the empathy
and care we strive to promote as core PETCO values among our store
associates," Myers said. In addition to helping in disasters, the
Foundation, with its animal adoption group partners around the
country, helped place more than 1.5 million adoptable animals in
2003. Building the PETCO Brand at the National Level with PETCO
Park Myers also discussed that while PETCO remains a
community-focused organization, it continues to strengthen its
brand at a national level in a variety of ways. One noteworthy
example is PETCO Park, the new home of the San Diego Padres
baseball team, which is increasing the Company's top-of-mind brand
recognition. Already generating more than half a billion
impressions nationwide, PETCO Park has been a home run from a
branding perspective, both in PETCO's home town as well as its
store communities across the country. Other Business Items A
shareholder proposal relating to the review of animal sales was
rejected. More than 98% of the votes cast were against the
shareholder proposal. About PETCO Animal Supplies, Inc. PETCO is a
leading specialty retailer of premium pet food, supplies and
services. PETCO's vision is to best promote, through its people,
the highest level of well being for companion animals, and to
support the human-animal bond. PETCO generated net sales of $1.6
billion in fiscal 2003. It operates 669 stores in 44 states and the
District of Columbia, as well as a leading destination for on-line
pet food and supplies at http://www.petco.com/. Through the PETCO
Foundation, PETCO's non-profit charity, the Company endeavors to be
a community leader in promoting the welfare of companion animals,
as well as the importance of the human-animal bond. The PETCO
Foundation has raised more than $17 million since inception in
1999. More than 2,000 non-profit grassroots animal welfare
organizations from around the nation have received support from the
Foundation. Certain statements in this news release that are not
historical fact constitute "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.
Stockholders and other readers are cautioned not to place undue
reliance on these forward-looking statements. Such forward-looking
statements involve known and unknown risks, uncertainties and other
factors, which may cause the actual results of PETCO to be
materially different from historical results or from any results
expressed or implied by such forward-looking statements. These
factors, such as performance of new stores, ability to execute
expansion strategy and sustain growth, debt levels, reliance on
vendors and exclusive distribution arrangements, competition,
integration of operations as a result of acquisitions, compliance
with various state and local regulations and dependence on senior
management, are discussed from time to time in the reports filed by
PETCO with the Securities and Exchange Commission, including the
Annual Report on Form 10-K for the fiscal year ended January 31,
2004. http://www.newscom.com/cgi-bin/prnh/20030603/PETCOLOGO
http://photoarchive.ap.org/ DATASOURCE: PETCO Animal Supplies, Inc.
CONTACT: Rodney Carter, Senior Vice President, CFO,
+1-858-202-7848, , or Don Cowan, Director, Communications,
+1-858-657-2086, , both of PETCO Animal Supplies, Inc. Web site:
http://www.petco.com/
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