The shares of PetSmart have shed more than 10% this afternoon, falling to a new annual low after the company reported Wednesday night that fourth-quarter earnings fell to $75.4 million, or 59 cents per share, down from $76.9 million, or 56 cents per share, a year ago. Sales climbed 13.8% to $1.33 billion. Analysts had predicted earnings of 60 cents a share on revenue of $1.34 billion.

Looking ahead, the firm expects first-quarter earnings of 29-33 cents per share, below the consensus estimate of 35 cents per share. PetSmart also predicted 2008 earnings between $1.51 and $1.59 per share. Analysts estimate 2008 earnings of $1.51 per share.

The security has fallen below former support in the 20.50 region, tagging a fresh annual low of 19.66. The equity has been in a steady downtrend below its 10-week and 20-week moving averages since September 2007, shedding more than 39% of its value.

The stock could suffer from downgrades, as 6 of the 14 analysts following the retailer rate it a buy or better. Any downgrades could add fresh selling pressure to the shares.