Online sales decline for e-retailer PetMed Express in its fiscal Q2
October 22, 2014 10:11 AM
Web sales dipped for PetMed Express Inc. in the second quarter of fiscal 2015 compared to the same quarter last year, though e-commerce accounted for a higher percentage of the company’s declining sales.
PetMed Express sells prescription and non-prescription pet medications and other health products for dogs and cats online at 1800PetMeds.com and over the phone at 1-800-PetMeds.
The second quarter was especially rough, said Menderes Akdag, the chairman, president and CEO, on the company’s Q2 earnings conference call because flea and tick season started late, possibly decreasing sales of medication designed to keep dogs and cats free of the pests. Despite that, the average order size was up to $75 compared to $73 in the same quarter last year.
The company’s advertising cost of acquiring a customer rose to $45 for the quarter and $50 for the first six months, Akdag said. That’s an increase from $41 and $46, respectively, from 2014. Akdag attributed the increase to higher advertising costs, and said the advertising costs for online channels increased faster than for TV channels.
For the second quarter ended Sept. 30, PetMed Express, No. 152 in the Internet Retailer 2014 Top 500 Guide, reported:
- PetMed Express didn’t break out web sales in dollars in its second quarter earnings filing, but did report that the web accounted for 80% of total sales for the quarter, compared with 79% in the previous quarter. Based on those percentages, web sales totaled $46.08 million in Q2 2015, a 3.6% decline from $47.80million in Q2 2014.
- Total sales decreased 4.8%to $57.6 million from $60.5 million.
- Net income decreased 9.5% to $3.8 millionfrom net income of $4.2 million in the second quarter of 2014.
For the first six months of fiscal 2015 PetMed Express did not break out web sales but did report:
- Total sales decreased 3.4% to $130.1 million from $134.7 million in the first six months of fiscal 2014.
- Net income decreased 1.1% to $8.8 million from net income of $8.9 million in the same period last year.
Web sales for PetMed Express also dropped in the first quarter of fiscal 2015, by 1%. However, in fiscal year 2014, which ended June 30, PetMed Express reported a 5% increase for both web sales and net income. Total sales were $233.4 million, a 2.5% increase from $227.8 million in fiscal 2013.