CEO Sharon Price John says Build-A-Bear’s old e-commerce system is a big reason for disappointing online sales in December.
For the first fiscal quarter of 2010, web sales for PetMed increased 18.5% while total sales grew 12.9%. E-commerce accounted for 67.1% of total revenue compared with 64% in the first quarter of FY 2009.
For the first fiscal quarter of 2010, web sales for PetMed, No. 109 in the Internet Retailer Top 500 Guide, increased 18.5% to $51.8 million from web sales of $43.7 million in the first quarter of fiscal 2009. Overall for the first fiscal quarter ended June 30, total revenue grew year over year 12.7% to $77.2 million from $68.4 million.
The web accounted for 67.1% of total sales in Q1 of fiscal 2010 vs. 63.9% in the first quarter of fiscal 2009. Net income in the quarter rose 22.7% to $8.1 million from $6.6 million in the previous year. “Our continuing focus will be on capturing additional market share, increasing reorders with personalized communication and health education content, and improving our customer service levels in fiscal 2010,” says PetMed CEO Menderes Akdag.
In the first quarter PetMed acquired 297,000 new customers compared with 267,000 new customers in the prior year, an increase of 11.2%. "We are pleased to report a 29% increase to our income from operations for the quarter, and a 17% increase in our reorder sales, compared to a 16% increase in reorder sales for the same quarter in the prior year,” says Akdag. “Our costs to acquire a new customer decreased by 12% to $33, compared to $38 for the same quarter in the prior year.”