PetMed Express shares fall 12% after earnings and sales miss
PetMed Express Inc. shares sank 12.5% in Monday premarket trading after the pet pharmacy company reported fiscal first quarter earnings and sales that missed consensus. Net income totaled $5.3 million, or 26 cents per share, down from $12.6 million, or 62 cents per share, last year. Sales of $80.0 million were down from $87.4 million in 2018. The FactSet consensus was for EPS of 42 cents and sales of $85.8 million. Average order value fell to $86 from $90 last year. PetMed Chief Executive Menderes Akdag said in a statement that sales and gross margins were hurt by online competition and pricing pressure, which forced them to slash prices. Margins could get a boost from more direct purchasing relationships with manufacturers, he said, and in fiscal 2020, the company will be focused on greater advertising spend efficiency and e-commerce investment while remaining price competitive. PetMed, which declared a 27-cents-per-share quarterly dividend, said it would continue to pay regularly quarterly dividends, but said they would be "discretionary" in the future. PetMed Express stock has fallen 59.6% over the past year while the S&P 500 index is up 6.2% for the period.
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