PetSmart is attempting to boost sales by offering raw pet food and additional services at its grooming salons, including coloring dog fur with non-permanent chalk.
This decision follows company officials issuing guidance for the first quarter and full year that missed Wall Street expectations.
Consumers who purchase natural and raw pet foods and utilize PetSmart’s grooming services tend to visit the retailer more frequently and spend more money across the store, said CEO David Lenhardt.
PetSmart officials also plan to offer fresh pet food in all of the retailer’s 1,300 locations and launch raw frozen food in roughly 40 percent of its locations. The new grooming services, which include stenciling designs and shapes into dog’s fur with washable chalk, debuted in early March.
The company’s net income dropped to $131.5 million, or $1.28 per share, in quarter, which ended Feb. 2, compared with $134 million, or $1.24 per share, a year prior. The year-earlier quarter includes an extra week.
Revenue dropped by 4 percent to $1.8 billion from $1.88 billion.
Analysts predicted earnings of $1.21 per share and revenue of $1.82 billion, according to media reports.
For the first quarter, company officials expect earnings per share between 99 cents and $1.03, which falls below $1.07 per share analysts expect, on average.