Business
PetMed Express d/b/a 1-800-PetMeds Announces Its Third Fiscal Quarter Financial Results and Its Quarterly Dividend of $0.27 Per Share
Gross Margins Improved Sequentially from 28.6% to 29.5%Net Income Margins Increased 180 Basis Points SequentiallyAverage Order Size increased from $84 to $85
About this update from Petmed Express, Inc.
[{"type":"text","content":"Gross Margins Improved Sequentially from 28.6% to 29.5%Net Income Margins Increased 180 Basis Points SequentiallyAverage Order Size increased from $84 to $85\n DELRAY BEACH, Fla., Jan. 21, 2020 (GLOBE NEWSWIRE) -- PetMed Express, Inc. (NASDAQ: PETS) today announced its financial results for the quarter ended December 31, 2019. Net sales for the quarter ended December 31, 2019 were $59.9 million, compared to $60.1 million for the quarter ended December 31, 2018. Net income was $6.8 million, or $0.34 diluted per share, for the quarter ended December 31, 2019, compared to net income of $7.8 million, or $0.38 diluted per share, for the quarter ended December 31, 2018, a 10% decrease in diluted earnings per share. Average order size increased to $85 for the quarter ended December 31, 2019, compared to $84 for the same quarter in the prior year. Reorder sales increased 1.0%, to $53.8 million for the quarter ended December 31, 2019, compared to $53.3 million for the same quarter in the prior year. Menderes Akdag, CEO and President, commented: “We were encouraged with improvements to our average order size, and gross and net income margins during the quarter. Gross margins improved by 90 basis points from 28.6% in the September quarter to 29.5% in the December quarter. Net income margins improved 180 basis points from 9.6% in the September quarter to 11.4% in the December quarter. The gross margin increase can be attributed to our success in obtaining direct purchasing relationships with all the major manufacturers, and the implementation of the minimum advertised price (MAP) policy by those manufacturers. We anticipate MAP pricing to stabilize pet medication prices throughout the online channel. Net cash from operations for the nine months ended December 31, 2019 was $21.6 million. In 2020, we will focus on optimizing our marketing in this more competitive environment and being more efficient with our advertising spending. In addition, we will continue investing in our e-commerce platform to better service our customers. This platform will enable us to improve upon our already strong net promoter score of 84.0%. We believe this customer satisfaction measure reflects the strong bond we have with our customers and will assist the Company with future customer retention.” The Board of Directors declared a quarterly dividend of $0.27 per sh...