PetMed Express (PETS) Reports In-Line Q1 EPS, Revenues Beat

PetMed Express (NASDAQ: PETS) reported Q1 EPS of $0.39, in-line with the analyst estimate of $0.39. Revenue for the quarter came in at $96.2 million versus the consensus estimate of $87.93 million.

• Net sales for the quarter ended June 30, 2020 were $96.2 million, compared to $80.0 million for the quarter ended June 30, 2019, an increase of 20%.
• Net income for the quarter ended June 30, 2020 was $7.8 million, or $0.39 diluted per share, compared to net income of $5.3 million, or $0.26 diluted per share, for the same quarter the prior year, an increase to diluted earnings per share of 47%.
• Reorder sales for the three months ended June 30, 2020 were $80.4 million, compared to $67.7 million for the three months ended June 30, 2019, an increase of 19%.
• New order sales for the three months ended June 30, 2020 were $15.8 million, compared to $12.2 million for the three months ended June 30, 2019, an increase of 29%.
• The Company acquired approximately 186,000 new customers in the quarter ended June 30, 2020, compared to 140,000 new customers in the same period the prior year.
• The average order size for the quarter ended June 30, 2020 was $89, compared to $86 for the quarter ended June 30, 2019.

Menderes Akdag, President and CEO, commented: “During the June quarter demand in the ecommerce channel continued to be strong, with consumers shifting their purchases to online, which positively impacted both our top and bottom line. In addition to sales growth, our operating income margins improved by 210 basis points, which positively impacted our earnings in the quarter. We were more efficient with our advertising in the quarter reducing our customer acquisition cost from $62 in the quarter ended June 30, 2019 to $48 in the current quarter, while increasing advertising expenses by approximately 5%. As an essential business, we have been open during our normal business hours without any material disruptions in our operations. We are dedicated to making every effort to ensure pets get the medications they need in these challenging times. We have also taken extra precautions to ensure the health and safety of our employees. Also, so far, we have not seen any material disruptions in our supply chain, but as a precaution we have temporarily increased our inventory during the quarter. In fiscal 2021, we are focusing on redesigning our website and mobile app to optimize our customers’ digital experience.”

For earnings history and earnings-related data on PetMed Express (PETS) click here.

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