PetMed Stock Falls As Q1 Earnings Trail Analyst Consensus, Operating Margin Contraction - PetMed Express (NASDAQ:PETS)

PetMed Express Inc PETS has reported a Q1 EPS of $0.22, lagging the consensus of 0.36 and lower than $0.39 posted a year ago.
Net sales were $79.3 million, down 18% Y/Y and far below the consensus estimate of $86.5 million.
Mendo Akdag, the CEO, commented, "there was a dramatic increase in veterinary visits who were unable to visit their veterinarians during the pandemic. Since some pet owners purchase medications directly from their vets during their veterinary visit, the Company believes this negatively impacted its sales during the quarter."
The gross margin remained almost unchanged at 27%. Overall operating margin contracted from 9.8% to 6.8%.
Outlook: PetMed expects to see more robust reorder sales in the back half of FY 2022, as it anticipates more prescriptions being renewed.
Finally, the Company would like to acknowledge its current CEO Mendo Akdag, who will be leaving the Company on July 30.
The Board of Directors declared a quarterly dividend of $0.30 per share, payable on August 13 for the record date of August 6.
Price Action: PETS shares drop 11.1% at $24.7 during the premarket session on the last check Monday.
Photo by michel kwan from Pixabay