In its second-largest acquisition, Amazon buys the company for $970 million.
But web sales through nine months are down 10%.
Online and overall sales were down in the fiscal 2013 third quarter and through nine months of the 2013 fiscal year for PetMed Express Inc.
PetMed Express sells online at 1800PetMeds.com. For the third quarter ended Dec. 31, the company reported:
- The web accounted for 78% of total sales compared with 77% in the third quarter of fiscal 2012. Based on those percentages Internet Retailer calculates e-commerce revenue decreased year over year 0.5% to $38.7 million from $38.9 million.
- Total sales of $49.6 million, a 1.8% decrease from $50.5 million.
- Net income of $4.6 million, a 17.9% increase from a $3.9 million profit in the same quarter a year ago.
The sales decline stems partly from the lack of products from pharmaceutical maker Novartis AG because of a manufacturing issue, says Menderes Akdag, president and CEO of PetMed Express, No. 120 in the Internet Retailer Top 500 Guide. Additionally, during a conference call earlier in the year, Akdag said consumers were shifting to generic brands and placing smaller orders as a result. He expects production to resume in August, according to a conference call with analysts to discuss the third quarter results.
For the first nine months:
- PetMed did not disclose a web sales growth percentage. Based on Q3 data and data released for the first two quarters, Internet Retailer estimates web sales were $136.5 million, a 9.6% decrease from $151.0 million in the prior year period.
- Total sales were $176.7 million, down 3.1% from $182.3 million.
- Net income was $12.6 million, a 0.8% decrease from net income of $12.7 million through the first three quarters last year.
PetMed Express sells prescription and non-prescription pet medications, health products and supplies for dogs, cats and horses.