PetSmart Raises 3Q Guidance

PetSmart (NYSE: PETM) raised its third-quarter earnings forecast on Thursday, citing favorable momentum in its business derived from newly-implemented strategies it hopes has set it a part from the competition.

The Phoenix-based maker of pet foods, toys and supplies now expects quarterly earnings in the range of 46 cents to 48 cents a share, up from its earlier forecast between 41 cents and 45 cents a share.

For the full year, the company predicts earnings will be from $2.46 to $2.52 a share, higher than its earlier expectation between $2.40 and $2.48 a share. Analysts polled by Thomson Reuters are looking for third-quarter earnings of 45 cents and 2012 earnings of $2.46 a share.

The company attributed the updated guidance to improved comparable store sales growth during the quarter. PetSmart predicts comparable sales, or sales at stores open more than a year, will be up 5.5% to 6% this period, up from its earlier view between 3% and 4%.

"The favorable momentum in our business is the result of our differentiation, which is at the core of our brand and sets us apart from the competition,” PetSmart Bob Moran said in a statement.