Q3 2025 Petmed Express Inc Earnings Call Transcript
Key Points
- PetMed Express Inc (PETS) achieved $2 million in adjusted EBITDA for Q3, marking a $1.1 million improvement year-over-year.
- The company successfully implemented cost-cutting measures and consolidation strategies, targeting $5 million in annualized savings.
- PetMed Express Inc (PETS) enhanced its digital shopping experience and relaunched its iOS and Android mobile apps, improving customer engagement.
- The company reported a 7% increase in average order value (AOV) to $108, indicating higher spending per customer.
- Inventory efficiency improved significantly, with inventory turn rising to 1.5% in Q3 compared to 0.9% last year, and a 66% reduction in total inventory on hand.
- Net sales for Q3 were $53 million, a 19% decline compared to the same period last year, primarily due to reduced advertising spend.
- The company experienced a decrease in new customer acquisition, with sales and new customer numbers falling short of expectations during the holiday period.
- PetMed Express Inc (PETS) reported a net loss of $700,000 for the third quarter, although this was an improvement from the previous year.
- The competitive and promotional holiday environment led to a strategic decision to prioritize margin protection over aggressive promotions, impacting sales.
- Despite improvements, the company is still facing challenges in capturing younger demographics, such as millennials and Gen Z, which are crucial for future growth.
Greetings, and welcome to PetMed Express third quarter financial results conference call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Reed Anderson with ICR. You may begin.
Thank you, and welcome to the PetMed Express Fiscal Third Quarter 2025 Earnings Conference Call. Certain information included during this call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934 as amended that may involve a number of risks and uncertainties. These statements are based on our beliefs as well as assumptions we have used based on information currently available to us. Because these statements reflect our current views concerning future events, these statements involve risks, uncertainties and assumptions.
Actual results could differ materially from those projected. There can be no assurance that any forward-looking results will occur or be realized
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