PetMed Express, Inc. reported a decline in net sales for the three months ended September 30, 2024, totaling $59.6 million, down 16.1% from $71.0 million in the same period of 2023. For the six months ended September 30, 2024, net sales were $127.5 million, a decrease of 14.6% from $149.2 million year-over-year. The decline in sales was attributed to decreases in both reorder and new order sales, with reorder sales for the quarter at $50.1 million (down 13.7%) and new order sales at $7.4 million (down 29.4%).
Despite the drop in sales, the company achieved a net income of $2.3 million for the three months ended September 30, 2024, compared to $715,000 in the prior year, marking a significant increase of 225%. For the six-month period, net income rose to $6.1 million from a loss of $421,000 in the same period of 2023. This improvement in profitability was supported by a reduction in total operating expenses, which decreased to $16.8 million for the quarter from $19.2 million in the previous year, and to $30.3 million for the six months from $43.8 million.
Gross profit for the three months ended September 30, 2024, was $17.3 million, down from $20.1 million in 2023, while gross profit for the six months was $35.3 million, compared to $42.6 million in the prior year. The gross margin for the quarter improved slightly to 29.1% from 28.3% in 2023, attributed to a favorable sales mix and reduced discounting.
The company’s cash and cash equivalents stood at $52.0 million as of September 30, 2024, a decrease from $55.3 million as of March 31, 2024. Notably, PetMed Express has no debt obligations and reported a net cash used in operating activities of $1.1 million for the six months, compared to $0.2 million in the same period of 2023.
In terms of strategic developments, PetMed Express acquired PetCareRx in April 2023, which has impacted its financials, particularly regarding net operating losses. The company also announced the suspension of its quarterly dividend to focus on growth initiatives. Additionally, management identified material weaknesses in disclosure controls and procedures, particularly concerning tax calculations and executive compensation, and is implementing a remediation plan to address these issues.
About PETMED EXPRESS INC
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