UPDATE: PetMed Express Posts In-Line Q1 Earnings

PetMed Express

reported a 4.6% gain in its fiscal first-quarter earnings. PetMed's quarterly profit rose to $5 million, or $0.25 per share, versus a year-ago profit of $4.8 million, or $0.24 per share. Its revenue fell 2.2% to $72.5 million. However, analysts were expecting a profit of $0.25 per share on revenue of $74.25 million. PetMed's online sales were around 80% of all sales, versus 79% in the year-ago same quarter the prior year. Its gross margin widened to 32.8% from 32.4%, while operating expenses shrank 3.5%. Menderes Akdag, CEO and President, commented: "We were able to increase our gross margins for the second consecutive quarter and decrease our operational expenses to improve our bottom line results for the quarter ended June 30, 2014. For the quarter ended June 30, 2014 our gross profit increased by 40 basis points, which can be attributed to a cost reduction in certain brands. For the quarter ended June 30, 2014 our operational expenses decreased by 30 basis points, mainly due to a reduction in advertising spending. Despite our sales decrease for the quarter we were able to increase our average order size to $78 for the quarter ended June 30, 2014, compared to $77 for the same quarter in the prior year. For the remainder of Fiscal 2015 we are focusing on improving our marketing efforts to increase sales." PetMed shares gained 2.11% to close at $13.52 on Friday.