Petco Delays Report, May Restate Results

Petco Animal Supplies Inc. (PETC) on Friday said it will delay filing its annual report after finding errors in the way it accrued expenses, which is expected to reduce its recently reported quarterly earnings.

Shares of the pet supplies retailer, which said it may have to restate results, fell 9.9 percent.

Petco said it expects the errors to cut fiscal fourth-quarter 2004 earnings by $3.0 million to $4.5 million, or about 5 cents to 7 cents per share.

Petco on March 10 said earnings for the fiscal fourth quarter ended Jan. 29 rose to $27.6 million, or 47 cents per share, from $20.9 million, or 36 cents per share, a year ago.

San Diego-based Petco said it discovered the errors on April 1, and has taken unspecified steps to strengthen internal controls. The retailer said the errors were limited to its distribution operation.

Petco said it was working with its accountants to determine whether it will need to restate results. The retailer gave no further details on the errors, and a spokesman did not immediately return a call seeking comment.