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Market Update : 
PetSmart Q3 Earnings Call Transcript
Author: 123jump.com Staff
123jump.com
Last Update: 8:49 PM ET December 06 2008


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Lawrence P. Molloy

Unit, comp units are actually slightly down.

Michael Baker – Deutsche Bank North America

Okay then, I guess the size of the basket, must be up then?

Lawrence P. Molloy

That’s correct.

Michael Baker – Deutsche Bank North America

Got it, thank you.

Operator

Our next question is from Christopher Horvers with JP Morgan, your question please?

Christopher Horvers – JP Morgan

Thanks good evening. As you think about the Wal-Mart concern is going to stick there until I think it’s disproven and particularly on the food side, maybe you could talk about what the prospects are for price reductions in light of what inflation was in the high end food brands versus the grocery brands?

Philip L. Francis

This is Phil. I would say on a percentage basis the increases were very similar. My experience, I can’t differentiate between the two, within a range of a couple of percent well they were similar across the board.

Christopher Horvers – JP Morgan

Okay and what has been I guess the commentary from the P&Gs and the Colgates and the big food vendors as they’ve been thinking about price going into next year?

Philip L. Francis

Well I believe I said earlier our hypothesis has been this inflation was going to flow through the first quarter and a half or something. We have had two of the big vendors describe to us price increases are going to be coming in January so that’s new news. I don’t know if the others will be there or not and what the implication of that is. Probably at a lower level than in ’08 but we’re going to have some inflation benefit continuing in the back half of next year.

Lawrence P. Molloy

First half, oh back half?


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