PetMed second quarter Net sales decreases 1.9% to $61.2 million

PetMed Express, Inc. (Nasdaq:PETS) today announced its financial results for the quarter ended September 30, 2010. Net sales for the quarter ended September 30, 2010 were $61.2 million, compared to $62.4 million for the quarter ended September 30, 2009, a decrease of 1.9%. Net sales for the six months ended September 30, 2010 were $135.6 million, compared to $139.6 million for the quarter ended September 30, 2009, a decrease of 2.9%. Net income was $5.0 million, or $0.22 diluted per share, for the quarter ended September 30, 2010, compared to net income of $6.3 million, or $0.28 diluted per share, for the quarter ended September 30, 2009, a 20% decrease to EPS. Net income was $12.2 million, or $0.54 diluted per share, for the six months ended September 30, 2010, compared to net income of $14.3 million, or $0.63 diluted per share, for the six months ended September 30, 2009, a 15% decrease to EPS. Reorder sales increased by 4.6%, from $45.8 million to $47.9 million for the quarters ended September 30, 2009 and 2010, respectively. Reorder sales for the six months ended September 30, 2010 were $105.5 million, compared to $99.8 million for the six months ended September 30, 2009, an increase of 5.7%.

Menderes Akdag, President and CEO, commented: "It has been another challenging quarter due to our having to pay more to advertise, combined with consumers giving greater consideration to price and reducing their usage of the product categories we offer. Our online sales continued to increase, by 4.1% to $43.9 million for the quarter compared to $42.2 million for the prior quarter, with approximately 72% of our orders being generated from our website during the quarter compared to 67% in the prior quarter. During the quarter we bought back approximately 222,000 shares of our own common shares for $3.5 million, and increased our quarterly dividend, from $0.10 per share to $0.125 per share, an increase of 25%. Our focus in fiscal 2011 continues to be conversion optimization, and the expansion of our product offerings into pet supplies."

Source: PetMed Express, Inc. 

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