PetMed Q2 Profit Rises On Lower Expenses - Quick Facts

(RTTNews) - PetMed Express, Inc. (PETS) reported that, despite sales being down slightly, it was able to increase both gross profit margins and average order size during the second quarter 2015. Gross profit increased 128 basis points, for the quarter. Excluding the one-time charge in the quarter ended September 30, 2014, operating expenses decreased by about 79 basis points, which can be attributed to a reduction in advertising spending.

For the remainder of Fiscal 2016, the company said it is focusing on improving marketing efforts to increase sales and profitability.

Excluding a one-time charge for an IT-related discontinued project, net income for the quarter ended September 30, 2015 was $4.5 million, or $0.22 per share. On average, six analysts polled by Thomson Reuters expected the company to report profit per share of $0.20 for the quarter. Analysts' estimates typically exclude special items.

Net income was $4.5 million or $0.22 per share compared to $2.7 million or $0.14 per share, previous year.

Net sales for the quarter ended September 30, 2015 were $56.7 million, compared to $57.6 million for the quarter ended September 30, 2014, a decrease of 1.5%. Analysts expected revenue of $58.34 million for the quarter. The company's online sales for the quarter ended September 30, 2015 were approximately 81% of all sales, compared to 80% for the same quarter the prior year.

The Board of Directors declared a quarterly dividend of $0.18 per share on the Company's common stock. The dividend will be payable on November 13, 2015, to shareholders of record at the close of business on November 2, 2015.