The ratings reflect the risks associated with PetsMart Inc.'s participation in the competitive and highly fragmented pet supplies retail industry. These risks are only partially mitigated by the company's established market position in the industry and its improved operating performance. PetsMart has made significant progress in turning around its operations over the past three years. The company continued to show positive operating performance, as comparable-store sales grew 5.7The ratings reflect the risks associated with PetsMart Inc.'s participation in the competitive and highly fragmented pet supplies retail industry. These risks are only partially mitigated by the company's established market position in the industry and its improved operating performance. PetsMart has made significant progress in turning around its operations over the past three years. The company continued to show positive operating performance, as comparable-store sales grew 5.7 % in the first quarter of 2005 and 6.3% and 7% in all2004 and 2003, respectively. The gains are attributed to PetsMart's successful store reformatting and expanded focus on pet services. The reformatting of the company's store base into the Eagle format -- which aims to give customers an easier shopping experience
