PetMed Express Reports ‘Challenging’ First Quarter
PetMed Express Inc. of Pompano Beach, Fla., reported net income of $7.2 million on revenue of $74.4 million for its first quarter ended June 30, compared to net income of $8.1 million on revenue of $77.2 million in the year-ago period.
Unaffordable television ads coupled with consumer’s change in buying habits were the major factors in the quarter drop, said Menderes Akdag, chief executive officer and president of PetMed Express.
“It has been a challenging quarter due to a reduction in our advertising exposure, which is attributed to the lack of availability of television remnant space at affordable prices, combined with consumers giving greater consideration to price and reducing their usage,” he said.
PetMed Express’ online sales increased by 1 percent to $52.3 million for the first quarter, compared to $51.8 million in the year-ago period. About 70 percent of the orders were generated from the company’s website during the quarter, compared to 67 percent in the year-ago period, Akdag said.