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PetMed Express gets a dose of quarterly growth, but annual sales decline 1.7%

May 4, 2015 02:44 PM
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Web sales for PetMed Express Inc. were $40.5 million in the fourth quarter of 2015, up 4.1% compared with the same quarter of 2014, based on the retailer’s report Monday that the web accounted for 81% of its $49.99 million in total sales for the quarter. The pet medications and pet supplies company does not break out web sales in dollars. In the year-ago period, web sales were 80% of $48.63 million in quarterly sales, or $38.9 million.

For the retailer’s 2015 fiscal year that ended March 31, web sales fell 0.5% compared with the year before, with sales on the PetMed Express website accounting for 80% of the total sales of $229.40 million in sales, or $183.5 million. In fiscal 2014, web sales were 79%, of $233.39 million in total sales, or $184.38 million. Remaining sales are phone orders.

Reorders increased in the final quarter, helping quarterly sales increase 2.8% to $49.99 million compared with $48.63 million in the fourth quarter of 2014, president and CEO Menderes Akdag said Monday in a conference call with analysts, according to a Seeking Alpha transcript. For the year, PetMed Express sales decreased 1.7% to $229.40 million from $233.39 million. PetMed Express, which sells through 1800PetMeds.com, is No. 177 in the Internet Retailer 2015 Top 500 Guide.

“The increase in sales for the quarter was due to an increase in reorder sales and the decrease in sales for the fiscal year was due to a weakness in demand for flea and tick topicals for the first part of the fiscal year,” Akdag said.

Average order size and reorders increased in Q4, with the average order about $81 compared to $77 for the same quarter of 2014. For the fiscal year, the average order was $77 compared with $75 for the prior fiscal year, Akdag said.

PetMed Express is trimming its advertising budget as it does less mass marketing and takes a “more database one-to-one marketing” approach, he said.

For the 2015 fiscal fourth quarter ended March 31, PetMed Express reported:

  • Net income of $4.95 million, up 9.3% from $4.53 million in Q4 2014.
  • $42.5 million in reorder sales, up 3.6% from $41.0 million a year ago.
  • $7.5 million in new orders, a 2.6% decrease from $7.7 million a year ago.
  • 97,000 new customers acquired, 9.3% fewer compared with 107,000 acquired a year ago.
  • $4.01 million in advertising costs, 24.1% less than $5.28 million a year ago.

For the fiscal year ended March 31, Pet Med Express reported:

  • Net income of $17.45 million, down 2.9% from 17.97 million in fiscal 2014.
  • $189.7 million in reorder sales, a 0.8% decrease from $191.2 million a year ago.
  • $39.7 million in new orders, down 5.9% from $42.2 million in 2014/
  • 529,000 new customers acquired, 11.4% fewer than 597,000 the prior year.
  • $25.18 million in advertising costs, down 7.4% from $27.18 million.
 

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