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Jun 30, 2022
PetMed Express Q1 2023 Earnings Report
PetMed Express reported a decrease in sales and net income for the first quarter of fiscal year 2023, while making strategic investments in infrastructure and partnerships.
Key Takeaways
PetMed Express reported a decrease in sales to $70.2 million compared to $79.3 million in the same period last year, impacted by a slow start to the flea and tick season. Net income also decreased to $2.8 million, or $0.14 diluted earnings per share, compared to $4.4 million, or $0.22 diluted earnings per share, in the prior year. Despite the sales decline, the company saw a rebound in sales from its returning customer base later in the quarter and is focusing on long-term growth through investments in infrastructure, partnerships, and expansion into the broader wellness market.
First quarter sales were $70.2 million, down from $79.3 million in the same period last year, due to a slow start to flea and tick season.
Net income decreased to $2.8 million, or $0.14 diluted earnings per share, compared to $4.4 million, or $0.22 diluted earnings per share, in the prior year.
The company is investing in infrastructure, including processes, systems, and people, to grow long-term shareholder value.
PetMeds is expanding from a primarily existing customer-focused business to include a focus on generating new customers.
PetMed Express
PetMed Express
Forward Guidance
PetMeds is focused on improvement in new customer growth, continued migration to a recurring subscription model, active deployment of capital, full rollout of pet telemedicine capability, and expansion of product catalog and services.
Positive Outlook
- Expanding and accelerating new customer acquisition efforts.
- Continuing migration of business to a recurring subscription model.
- Leveraging capital to accelerate transformation through investments, partnerships, and acquisitions.
- Executing on the deployment and expansion of integrations and partnership with Vetster.
- Expanding product catalog and services, including a wider product assortment and more health and wellness services.
Challenges Ahead
- It takes time to transform a company, especially in a highly competitive market and in an uncertain economic environment.
- The company saw a slow start to flea and tick season due to seasonally colder temperatures, which continued into the early part of the most recent quarter.
- First quarter sales were down 11.5% year-over-year.
- The company hasn’t produced the results in net new customer growth.
- General and administrative expenses increased on a year-over-year basis.