PetMeds reports a sharp decline in sales

The American firm reported net sales of $59.6 million (€56.1M) for the second quarter of fiscal year (FY) 2025, ending 30 September 2024. This reflects a 16% year-over-year (YoY) decrease from $71 million (€66.8M) in Q2 2024.

Gross profits reached $17.3 million (€16.2M), down from $20.1 million (€18.9M) during the same period last year. However, gross margin increased slightly by 0.8%, reaching 29.1%.

Total operating expenses were reduced to $16.7 million (€15.7M), compared to $19.1 million (€17.9M) in the prior year.

6-month financials

Between March and September 2024, PetMeds’ sales revenue declined by 14.5% to $127.5 million (€120M).

Gross profits decreased to $35.2 million (€33.1M) from $42.5 million (€40M) in the same 6-month period last year. Operating costs also fell to $30.3 million (€28.5M), down from $43.8 million (€41.2M).

Business transformation

In 2023, PetMeds completed the acquisition of the online pet pharmacy PetcareRx.

According to CEO and President Sandra Campos, the ongoing integration and streamlining of operations between PetMeds and PetCareRx have lowered the cost structure, contributing to “strong sequential improvement” in Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization).

Campos highlighted that PetMeds is “well-positioned to lean more aggressively into differentiating product assortments, brand awareness campaigns and core marketing initiatives to drive growth.”

She expressed confidence in recent investments and the company’s strategic direction to bolster its competitive position.