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PETCO Leadership Team Reviews Performance and Strategies at
Annual Meeting
PETCO Leadership Team Reviews Performance and Strategies
at Annual Meeting
Highlights Strong Financial and Operational Results *
Focuses on Store Enhancements, Continued Expansion Plans
* Underscores Commitment to Animal Care Initiatives * Notes
Community Animal Welfare Support Through Foundation
by Steve Johnson, staff
June 8, 2004
On June 3, at PETCO's annual shareholders' meeting, company
Chief Executive Officer James Myers noted that through its
first quarter 2004, PETCO has delivered comparable store sales
increases of 5% or more in 44 of the past 45 quarters, extending
back more than 11 years.
In fiscal 2003, total sales increased to $1.65 billion, an
increase of 12% over the previous year.
Sales of services, including grooming and canine education,
acheived total annual growth of 22% in 2003. Services accounted
for the fastest growing segment of PETCO's business.
Operating income increased substantially to $138 million,
while net sales for PETCO during first quarter 2004 increased
13.7% to $425.9 million with a comparable store sales increase
of 6.3%. "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."
PETCO Store Expansion
In fiscal 2003, PETCO gained 54 new stores and created more
than 100 new "Millennium" format stores through the combination
of new stores and remodels. This brought the company a total
of 654 stores at the end of fiscal 2003. Through the first
quarter 2004, total stores increased to 669 in 44 states and
the District of Columbia.
In fiscal 2004, PETCO plans to open 90 new stores. "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
PETCO noted its dedication to raising animal care standards
within the industry by educating its employees and customers:
- 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's non-profit charity, the PETCO Foundation, raised
and donated more than $3.6 million to animal welfare groups
around the country. Since its inception, the charity has raised
more than $17 million.
PETCO noted that when devastating firestorms burned throughout
Southern California, its charity 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.
PETCO's charity also placed more than 1.5 million adoptable
animals in 2003 with adopting families.
Source: press release
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