PetSmart acquired Pet360 for $130 million in cash and up to $30 million more in future performance-based payments.
E-commerce revenue drops 1.1% as total sales decline 6.3%.
It was a downer of a start for fiscal year 2013 for PetMed Express Inc. as web sales, total revenue and profits all declined.
For the first quarter of fiscal 2013 ended June 30, PetMed, No. 120 in the 2012 Internet Retailer Top 500 Guide reported:
- The web accounted for 77% of total sales compared with 73% in the first quarter of fiscal 2012. Based on those percentages, online sales decreased 1.1% to $53.1 million from $53.7 million.
- Total sales declined year over year 6.3% to $69.0 million from $73.6 million.
- Net income decreased 16.7% to $4.0 million from $4.8 million.
- Average ticket declined year over year 8.8% to $73 from $80.
- The number of new customers declined 12.8% to about 197,000 from about 226,000 in the first quarter of fiscal 2012.
PetMed, an online retailer of pet medications and related merchandise, cited customers cutting back on the amount of merchandise and prescriptions they order as one reason for the tough financial quarter. “This reduction can be attributed to customers purchasing smaller quantities, for example a three-month supply instead of six months, additional discounts, and a change in product mix to lower-priced items,” says CEO Menderes Akdag.