PetMeds reports 19% sales decline as it pulls back on marketing actions

Online veterinary pharmacy PetMeds reported a performance decline from October to December 2024, the third quarter of its fiscal year (FY) 2025. Net sales dropped 19% year-on-year (YoY) to $52.9 million (€50.7M).

The Florida-based firm operated at a net loss of $700,000 (€671K) during the quarter, which CFO Robyn D’Elia calls a “meaningful improvement” over the prior year’s $2 million (€1.9M) loss. Gross profit was down 17% YoY in the last quarter of the year, from $17.9 million (€17.2M) in 2023 to $14.9 million (€14.3M) in 2024.

Officials blame a declining number of vet visits and a marketing pullback but highlight a 19.7% decrease in general and administrative costs.

The company has posted low numbers in recent years – it ended its FY2024 on a tense note, with sales up but profits down. In Q2 of FY2025, ending September 2024, the company posted a sales decline of 16%.

Turnaround strategy

PetMeds has told investors they are in the early stages of transforming the company.

The company is touting its cost-cutting measures and further integration of PetCareRx, which it acquired in FY2024. This acquisition drove double-digit sales growth in Q3 2024, which turned out to be short-lived. PetMeds says it is on target to generate $5 million (€4.8M) in annualized savings through operational integrations with PetCareRx.

The company also recently embarked on a tech refresh, with a full website overhaul in November, and relaunched mobile apps. Officials note the change was needed, as the company, which was founded in 1996, has struggled to bring in new customers. “We have not captured a younger, more millennial or Gen Z consumer,” states CEO Sandra Campos.

The refresh seems to have achieved its goal of bringing in consumers. Campos credits the tech improvements with bringing in 84,000 gross new customers, or 63,000 new customers, with orders shipped during the quarter. Still, new acquisitions fell short of initial targets.

Less advertising

Officials also note they backed off advertising and marketing efforts to save money. “While we intended to ramp up performance marketing efforts in this quarter, we encountered a highly competitive and promotional holiday environment, particularly between Black Friday and year-end,” Campos says.

The company ended the quarter with $2.8 million (€2.7M) less in gross YoY advertising spending.

“As a result, our sales and new customer acquisition during that period fell short of initial expectations,” Campos says. “However, this intentional pivot was necessary in order to maintain financial discipline.” She promises a strategic reset of the brand’s marketing, which currently focuses on top-of-funnel efforts on TV and radio.