Business
PetMed Express d/b/a 1-800-PetMeds Announces Its Second Fiscal Quarter Financial Results and Its Quarterly Dividend of $0.27 per Share
Quarterly Reorder Sales Increased 1.4%Gross Margins Improved Sequentially from 27.3% to 28.6%Operating Margins Increased 430 Basis Points Sequentially DELRAY
About this update from Petmed Express, Inc.
[{"type":"text","content":"Quarterly Reorder Sales Increased 1.4%Gross Margins Improved Sequentially from 27.3% to 28.6%Operating Margins Increased 430 Basis Points Sequentially\n DELRAY BEACH, Fla., Oct. 21, 2019 (GLOBE NEWSWIRE) -- PetMed Express, Inc. (NASDAQ: PETS) today announced its financial results for the quarter ended September 30, 2019. Net sales for the quarter ended September 30, 2019 were $69.9 million, compared to $71.4 million for the quarter ended September 30, 2018, a decrease of 2.0%. Net income was $6.7 million, or $0.33 diluted per share, for the quarter ended September 30, 2019, compared to net income of $10.8 million, or $0.52 diluted per share, for the quarter ended September 30, 2018, a 36% decrease in diluted earnings per share. Reorder sales increased 1.4%, to $61.9 million for the quarter ended September 30, 2019, compared to $61.0 million for the same quarter in the prior year. Menderes Akdag, CEO and President, commented: “We were encouraged with improvements to our reorder sales and gross and operating margins during the quarter. Gross margins improved by 130 basis points from 27.3% in the June quarter to 28.6% in the September quarter, and operating margins improved by 430 basis points from 7.7% in the June quarter to 12.0% in the September quarter. The gross margin increase can be attributed to our success in obtaining direct purchasing relationships with the major manufacturers, and the implementation of the minimum advertised price (MAP) policy by some of the major manufacturers. We anticipate MAP pricing to stabilize pet medication prices throughout the online channel. We made further progress in October, and we now have direct relationships with all of the major manufacturers, which may help further improve our gross margins in the future. We are also pleased to announce that on September 1st we launched our new PetMeds® Rewards Program. This customer loyalty program allows our customers to accrue points to receive additional discounts on future orders. This program will increase our engagement with our customer base and should help promote future reorder sales. Net cash from operations for the six months ended September 30, 2019 was $17.3 million, compared to $20.4 million for the same period last year. In fiscal 2020, we will continue to be price competitive and will focus on optimizing our marketing in this more com...