People Spending More On Their Pets

Posted in Wrestling Forums by carpinteyrosuy at 08:06, Sep 08 2013

é??ç¸?eople Spending More On Their Pets

Pet food manufacturers have had a rough time over <a href="http://www.madeelodesign.de/peuterey/">peuterey jacken winter 2013</a> the widespread recall of tainted food this year. But for pet supply retailers, these are good days and the tailwagging is replica borse louis vuitton likely to continue.

PetSmart Inc. (PETM), which has a market capitalization of US$4.4billion and runs a chain of superstores in the United States and Canada, has seen its shares rise 27% over the past 12 months and 107% over the past five years.

Even better, Pet Valu Canada Inc., with a market capitalization of just C$110million and much smaller stores in Ontario, outlet peuterey Manitoba canada goose jacke billig and the northeastern United States, has seen its shares soar 64% in the past 12 months and 1,500% moncler uk sale over the past five years.

What explains the sharp rise? Part of the longerterm performance is due to a rebound from the big selloff during the bear market of 2000 to 2002, but there is also an important trend at work here: Aging baby boomers who face empty homes after their children leave are seeking companionship in the form of lovable dogs and cats. consumers are expected to blow nearly US$41billion on their pets this year, up about 80% <a href="http://www.photo2video.co.uk/moncleroutlet/">moncler uk sale</a> since 1998. Big bags of commoditylike pet food and runofthemill dog leashes might form part of the tab, but increasingly consumers are splashing out on highend gourmet treats, <a href="http://www.cai-catanzaro.it/peuterey/">outlet peuterey</a> organic food, grooming products, pet attire and brandname toys.

As a result, operating margins at pet supply retailers are far higher than at most regular food retailers. Loblaw Companies Ltd. and WalMart Stores Inc. (WMT) have margins of 4% and 5.9%, respectively. PetSmart's margin is 7.6%. And Pet Valu's margin leads the pack, at an impressive 9.2%.

Pet Valu's shares trade at about 13 times trailing <a href="http://www.madeelodesign.de/canadagoose/">canada goose jacke billig</a> earnings, making them relatively cheap next <a href="http://www.biennalecarrara.it/replica+borse/">replica borse louis vuitton</a> to PetSmart's 22 times earnings. They are now 51% above Goodwood's average peuterey jacken winter 2013 cost but Mr. Puccetti believes there are more gains ahead if the company directs its rising cash flow toward growth plans in Canada with more company and franchiseowned stores.

"The Canadian pet industry is highly fragmented and in need of consolidation much like the sporting goods industry was before The Forzani Group Ltd. undertook an aggressive store expansion and roll up of independents," Mr. Puccetti said in a note to clients this week.