Petmed Express Q2 revenue falls 19% on lower prescription sales

PetMed Express

Tue 21:19

Overview
US pet pharmacy's Q2 revenue fell 19% yr/yr, mainly on lower prescription sales and more promotions
Q2 net loss narrowed from prior year, helped by lower administrative and advertising costs
Adjusted EBITDA loss widened in Q2 from a year ago

Outlook
Company focuses on transforming core pharmacy business and improving profitability at current scale
Company plans to reposition brand, enhance marketing, and improve website to boost customer retention
Company did not provide specific financial guidance for upcoming quarters or full year

Result Drivers
PRESCRIPTION SALES DROP - Co said lower prescription medication sales drove revenue decline
LOWER OPERATING COSTS - Co attributed narrower net loss to reduced administrative and advertising expenses
PRODUCT MIX SHIFT - Co said lower gross profit was due to unfavorable product mix and reduced manufacturer rebates

Company press release: ID:nGNXbf9mxB

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
$35.80 mln
 
Q2 Loss Per Share
 
$0.31
 
Q2 Net Loss
 
$6.40 mln
 
Q2 Adjusted EBITDA
 
-$3.60 mln
 

Analyst Coverage
The one available analyst rating on the shares is "sell"
The average consensus recommendation for the drug retailers peer group is "buy."
Wall Street's median 12-month price target for PetMed Express, Inc. is $1.40, about 12% above its November 9 closing price of $1.25
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 25 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)