PetMed Express' Q4 Earnings Hit By Pull Forward Of Demand; Still Raises Quarterly Dividend - PetMed Express (NASDAQ:PETS)

PetMed Express Inc PETS reported fourth-quarter earnings below expectations.
Reported EPS of $0.34 missed the analyst consensus of $0.40, was down 2.9% year-on-year. Sales decreased 3.5% Y/Y to $71.68 million, missing the consensus of $74.03.
The company says that the reduction in sales and net income were possibly related to a pull-forward of demand in the prior year due to the pandemic, along with colder weather during the March quarter, which might have delayed the start of flea and tick season.
The idea of a “pull forward in demand” is used in reference to the company that saw a boost in the early months of stay-at-home orders.
Reorder sales were $272.6 million, up from $248.6 million last year. New order sales increased slightly to $36.6 million, up 2.8%.
The company acquired approximately 443,000 new customers in the fiscal year 2021, compared to 421,000 new customers in the prior year.
The average order size for the period was $93, compared to $90 a year ago.
Gross margin and the operating margin stayed almost unchanged at 29% and 11% during the quarter.
Cash from operations increased to $40.1 million in fiscal 2021, compared to $38.8 million a year ago.
The company raised quarterly dividends from $0.28 to $0.30 per share.
Price Action: PETS shares are down 2.7% at $28.63 on the last check Monday.