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Petmed Express Q2 revenue falls 19% on lower prescription sales

By Reuters News


Overview

  • US pet pharmacy's Q2 revenue fell 19% yr/yr, mainly on lower prescription sales and more promotions

  • Q2 net loss narrowed from prior year, helped by lower administrative and advertising costs

  • Adjusted EBITDA loss widened in Q2 from a year ago


Outlook

  • Company focuses on transforming core pharmacy business and improving profitability at current scale

  • Company plans to reposition brand, enhance marketing, and improve website to boost customer retention

  • Company did not provide specific financial guidance for upcoming quarters or full year


Result Drivers

  • PRESCRIPTION SALES DROP - Co said lower prescription medication sales drove revenue decline

  • LOWER OPERATING COSTS - Co attributed narrower net loss to reduced administrative and advertising expenses

  • PRODUCT MIX SHIFT - Co said lower gross profit was due to unfavorable product mix and reduced manufacturer rebates


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

$35.80 mln

Q2 Loss Per Share

$0.31

Q2 Net Loss

$6.40 mln

Q2 Adjusted EBITDA

-$3.60 mln


Analyst Coverage

  • The one available analyst rating on the shares is "sell"

  • The average consensus recommendation for the drug retailers peer group is "buy."

  • Wall Street's median 12-month price target for PetMed Express, Inc. is $1.40, about 12% above its November 9 closing price of $1.25

  • The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 25 three months ago


Reuters Recommended Reads

  • Nov 10 - Sally Beauty Q4 sales slightly beat estimates on e-commerce growth

  • Nov 9 - Hain Celestial Q1 sales misses estimates

  • Nov 9 - Dole Q3 revenue meets expectations on North America volumes


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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