The company's leading market position in the industry; and Significantly improved operating performance. Participation in the highly competitive and fragmented pet foods, supplies, and services industry; and An aggressive growth strategy. The ratings on PetsMart Inc. reflect the company's participation in the competitive and highly fragmented pet supplies retail industry. These risks are partially mitigated by the company's leading market position in the industry and its significantly improved operating performance. PetsMart is a leading operator of specialty pet supply stores. The company has made significant progress in turning around its operations over the past three years. PetsMart continued to post positive operating performance in the first nine months of fiscal 2004, as comparable-store sales increased 6.9%. This is attributed to
