PetMeds Q1 Sales Fall 20% to $41M, Loss Narrows to $0.28/Share
PETS sits 22% above its 52-week low of $1.57 on light trading volume (0.3× avg).
Summary
PetMeds reported Q1 FY2027 (ended June 30, 2026) net sales of $41.0M, down 19.9% from $51.2M a year ago, driven by lower prescription medication sales and reduced promotional usage. Net loss narrowed to $6.1M, or $(0.28) per diluted share, from a $34.2M loss a year earlier, largely due to the absence of prior-year goodwill and trade name impairment charges. Adjusted EBITDA was $(3.4)M versus $(2.7)M last year. Management highlighted sequential sales stabilization, 70,000 new customers acquired at 15% lower acquisition cost, a 14% cut in G&A, and completion of the SAP ERP rollout. This follows the activist SilverCape's revised acquisition offer in late June; the company remains in play. The sale-leaseback transaction mentioned by the CEO adds balance sheet flexibility but also signals continued cash needs. Watch for any update on the SilverCape proposal or strategic alternatives during the earnings call.
At the time of this announcement, PETS was trading at $1.91 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $43.4M. The 52-week trading range was $1.57 to $4.10. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: GlobeNewswire.