Net sales for the second quarter of 2009 increased 5.4 percent to $1.31 billion, compared to the second quarter of 2008. The increase in net sales was partially impacted by $8.6 million in unfavorable foreign currency fluctuations. Comparable store sales -- or sales in stores open at least a year -- grew 0.8 percent in the second quarter. Pet services sales were $154.2 million, up 10.2 percent from the second quarter of last year.

"We continue to believe that we are well positioned to lead the pet specialty market given our core business strengths, commitment to fiscal discipline, and our solid leadership team. Our ability to provide pet parents with a uniquely engaged in-store experience, a differentiated assortment of products, services and solutions, and knowledgeable associates, creates an unmatched customer experience," said Bob Moran, Chief Executive Officer and President.

Guidance

"We expect third quarter earnings per share between $0.20 and $0.24 and comparable store sales to be flat," said Chip Molloy, Senior Vice President and Chief Financial Officer. "For the year, we are expecting earnings per share between $1.37 to $1.45 and comparable store sales growth of low single digits."

PetSmart increased cash, cash equivalents and restricted cash to $236 million and had zero borrowings on its credit facility at the end of the quarter. During the second quarter, the company purchased $25 million of PetSmart stock and distributed $3.8 million in dividend payments.

2009 Annual Guidance

-- Total sales growth: Mid-single digits -- Comparable store sales growth: Low-single digits -- Services sales growth: Mid- to high-single digits -- Net interest expense: Approximately $60 million for the fiscal year -- Income tax rate: 38.5 percent to 39 percent -- Earnings per share: $1.37 to $1.45 per share -- Capital expenditures: Between $115 million to $125 million -- Net new store growth: 40 to 42 -- PetsHotel growth: 20

Conference call information

PetSmart management has scheduled a teleconference for 4:30 p.m. EDT today to discuss results for the second quarter 2009. This teleconference will be webcast live for all investors at www.petm.com or www.streetevents.com. The webcast will be available until the company announces results for the third quarter of 2009. In addition, you can listen to the call live by dialing 866-818-1395 (within the United States and Canada) or 703-639-1379 (for international callers), code 1386766. A phone replay will be available through September 18, 2009, 11:59 p.m. EDT, at 888-266-2081 in the United States and Canada, or at 703-925-2533 for international callers, code 1386766.

About PetSmart

PetSmart, Inc. is the largest specialty pet retailer of services and solutions for the lifetime needs of pets. The company operates more than 1,145 pet stores in the United States and Canada, 156 in-store PetSmart PetsHotel(R) cat and dog boarding facilities, and is a leading online provider of pet supplies and pet care information (www.petsmart.com). PetSmart provides a broad range of competitively priced pet food and pet products; and offers complete pet training, pet grooming, pet boarding, Doggie Day Camp(SM) pet day care services and pet adoption services. Since 1994, PetSmart Charities, Inc., an independent 501(c)(3) non-profit animal welfare organization, has funded more than $87 million in grants and programs benefiting animal welfare organizations and, through its in-store pet adoption programs, has helped save the lives of more than 3.6 million pets.

Forward-looking statements

This news release contains forward-looking statements concerning our expectations for future performance, including the statements comprising our 2009 guidance. These "forward-looking statements" are based on currently available information, operating plans and projections about future events and trends. They inherently involve risks and uncertainties that could cause actual results to differ materially from those predicted in such forward-looking statements. Such risks and uncertainties include, but are not limited to: changes in general economic conditions; conditions affecting customer transactions and average ticket including, but not limited to, weather conditions or other seasonal events; our ability to compete effectively; disruption of our supply chain; our ability to effectively manage our growth and operations; changes in our cost structure; and changes in the legal or regulatory environment. Undue reliance should not be placed on such forward-looking statements as they speak only as of the date hereof, and we undertake no obligation to update these statements to reflect subsequent events or circumstances except as may be required by law.