PetMed Express (PETS) Shares Tumble on Q1 Miss
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PetMed Express Inc. (NASDAQ: PETS) reported Monday that its earnings and sales missed Wall Street views for the fiscal first quarter due to weak advertising and increased competition, pushing shares down to a 52-week.
The pet pharmacy company reported quarterly earnings of $7.2 million or 32 cents per share, down from $8.1 million or 36 cents per share in the same quarter last year.
Revenue for the company fell 4 percent in the three month period ended June 30 to $74.4 million, as the company said that its customer additions fell by a quarter to 220,000.
Analysts on average were looking for more robust results: EPS of 38 cents and sales of $81.1 million.
PetMed said that advertising expenses in the quarter fell 11 percent to $8.8 million from last year, but still made up more than half of the company’s operating expenses.
"It has been a challenging quarter due to a reduction in our advertising exposure, which is attributed to the lack of availability of television remnant space at affordable prices, combined with consumers giving greater consideration to price and reducing their usage,” Menderes Akdag, CEO and President, commented. “Our focus in fiscal 2011 is conversion optimization, and the expansion of our product offerings into pet supplies."
Shares of PetMed Express are down 7.1 percent to $16.37 in midday market movement Monday.
The pet pharmacy company reported quarterly earnings of $7.2 million or 32 cents per share, down from $8.1 million or 36 cents per share in the same quarter last year.
Revenue for the company fell 4 percent in the three month period ended June 30 to $74.4 million, as the company said that its customer additions fell by a quarter to 220,000.
Analysts on average were looking for more robust results: EPS of 38 cents and sales of $81.1 million.
PetMed said that advertising expenses in the quarter fell 11 percent to $8.8 million from last year, but still made up more than half of the company’s operating expenses.
"It has been a challenging quarter due to a reduction in our advertising exposure, which is attributed to the lack of availability of television remnant space at affordable prices, combined with consumers giving greater consideration to price and reducing their usage,” Menderes Akdag, CEO and President, commented. “Our focus in fiscal 2011 is conversion optimization, and the expansion of our product offerings into pet supplies."
Shares of PetMed Express are down 7.1 percent to $16.37 in midday market movement Monday.
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