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Jun 30, 2024
PetMed Express Q1 2025 Earnings Report
Reported a net income increase primarily due to a reversal of accumulated stock compensation expense, offset by lower gross profit.
Key Takeaways
PetMed Express reported a decrease in net sales but an increase in net income for Q1 2025. The increase in net income is primarily attributed to a reversal of accumulated stock compensation expense associated with the departure of the former CEO, offset by lower gross profit.
Net sales were $68 million, a decrease of 13% compared to the prior year.
Net income was $3.8 million, or $0.18 diluted earnings per share, compared to a net loss of $(1.1) million, or $(0.06) diluted earnings per share, for the prior year.
Increase in net income is primarily attributed to a $8.7 million reversal of accumulated stock compensation expense due to the departure of the former CEO, offset by lower gross profit of $4.6 million.
Adj. EBITDA of $(1.5) million was $4.9 million lower than prior year driven by lower sales and associated gross profit.
PetMed Express
PetMed Express
Forward Guidance
The company is positioning itself for future profitable growth by optimizing its cost structure and focusing on customer-centric attributes. Key cost reduction initiatives are underway, including streamlining operations. Early positive signs are validating the strategy to create an ecosystem of products and services for pets’ well-being and longevity.
Positive Outlook
- New executive team in place
- Focus on cost reduction
- Streamlining operations
- Advancing customer growth strategies
- Early positive signs of key leading indicators