PetMed Express’s Sales and Net Income Slip but still a BUY!

Posted: August 16, 2011 in Uncategorized
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PetMed Express, INC (PETS) – A pet pharmacy of which sells prescription + over the counter pet medications through 1-800PETMEDS and http://www.1800petmeds.com of which reported Q1 Net sales,Income ending June 30th.

Net Sales – $73.6 Million

Net Income – $4.8 Million

As reported there was a 1.1% decrease in Net Sales, and a 33% decrease in net income compared to the same quarter 1 year ago.  What was the reason for this decrease?? Firstly their may of been a decrease because PetMed Express (PETS) has to deal with some competition like PetSmart (PETM) and Wal-Mart (WMT). Another key attribute of which is playing a role in this may be that Vets still own over 70% of the pet medication Market.

“Although our sales were slightly down due to our more aggressive flea and tick product pricing, we had a slight increase in orders, which was positive,” said president and CEO Menderes Akdag

On a positive note Sales increased 1.3% to $17 Million according to Pompano Beach,Fla based company. Not to mention they have increased new customers by 102% year over year from 220,000 new customers Q1 2010, to 226,000 new customers Q1 2011. Menderes Akdag also announced that online sales jumped 3.4% to $54.1 million, and 73 percent of orders generated have now come from the Web or their online website. As the online world continues to be the forefront of shopping these days their is no question that numbers will continue to increase over the coming years ahead. PetMeds is ahead of the competition as a whole with being fully licensed as a pharamacy across all the 50 USA States. With estimates stating that roughly 70 Million plus USA households currently have pets and spend close to 50 Billion plus a year on them, there is customers to gain, and much much more money to be made. With PetMeds wonderful work ethic in this market it is no wonder why they have such great customer service of which continues to benefit them on all aspects.

At close today 8/15/2011 PetMed Express (PETS) closed around $10.00 which is 0.60 up from the 52 week low, and almost $9.00 from the peak of $18.87. If America loves Medications like we say and act like we do, than why not be for Pet Medication.

Currently PetMeds Express is a HOLD HOLD HOLD or, BUY BUY BUY

Disclosure – Currently I hold no position in PetMed Express, INC (PETS) nor plan to initiate a position in the next 3 trading days.

 

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