Q2 web sales climb 4% for PetMed Express
October 22, 2012 05:07 PM
Total second quarter sales were flat for online pet pharmacy and supplies retailer PetMed Express Inc., but e-commerce revenue was up as shoppers shifted more orders to the Internet.
For the second quarter of fiscal 2013 ended Sept. 30, PetMed Express, which operates 1800PetMeds.com, No. 120 in the 2012 Internet Retailer Top 500, reported:
- The web accounted for 77.1% of total sales compared with 74.1% in the second quarter of fiscal 2012. Based on those percentages Internet Retailer calculates e-commerce revenue increased year over year 3.9% to $44.8 million from $43.1 million.
- Total sales declined 0.2% to $58.1 million from $58.2 million.
- Net income increased 2.6% to $4.0 million from $3.9 million in the second quarter of fiscal 2012.
PetMed Express reduced its new customer acquisition costs slightly to $42 per customer compared with $43 per customer in the prior year, but a lack of product availability from a pharmaceutical company hampered sales, PetMed Express says.
“Although sales were relatively flat during the quarter, total orders increased by 5.5%, and reorder sales increased by 2.1%,” CEO Menderes Akdag says. “The unavailability of Novartis brands due to the manufacturer’s suspended production continued to negatively impact our sales.”
For the first two quarters:
- The web accounted for 77.1% of total sales compared with 73.5% in the first two quarters of fiscal 2012. Based on those percentages Internet Retailer calculates e-commerce revenue increased year over year 1.0% to $97.9 million from $96.9 million.
- Total sales declined 3.6% to $127.1 million from $131.8 million.
- Net income decreased 9.1% to $8.0 million from $8.8 million in the first two quarters of fiscal 2012.
PetMed Express didn’t release any financial guidance for the third quarter, but did say it would emphasize the sale of more profitable products and further control customer acquisition costs to improve performance. “Looking to the future, we will continue to focus on advertising efficiency and shifting sales to higher-margin items, including generics, while continuing to expand our product offerings,” Akdag says.