PetMed Express Had A Great Monday
PetMed Express, Inc. and its subsidiaries, doing business as 1-800-PetMeds, operates as a pet pharmacy in the United States. The company markets prescription and non-prescription pet medications, and other health products for dogs and cats directly to the consumers.
The love affair with pets, in particular cats and dogs goes back to the Egyptian times. Back in the Egyptian times, dogs and cats were laid to rest in elaborate tombs decorated with inscriptions, furnished with treasure and scented by incense. It’s believed that dogs and cats improve human physical and mental health.
68% of households in America have a pet. This is double the percentage of households that have children. And pet owners will do practically anything or their cat or dog. I should know…a couple of weeks ago, I thought my dog broke his leg and all I could think about was the $2000 bill for examination and surgery.
However, what I do know is pet owners will do practically anything for their cat or dog. Did you know cats and dogs double the percentage of households that have children. Did you know in the United States, in terms of quantity, cats and dogs are ranked #2 and #3 among pets.
Three months ago, when PetMed announce their quarterly earnings, they didn’t do so hot. The company missed earnings for earnings/share and revenue. The company blamed the bad results on competition which affected their gross margins and sales.
So the PetMed said they would go straight to the manufacturers to lower cost, increase advertisements and beef up their e-commerce platform. It appears their strategy is already working.
Shares of PetMed Express Inc. rocketed 29% toward an 11-month high in active morning trading Monday, after the pet pharmacy reported fiscal second-quarter profit and sales that fell less than expected, as growth in re-order sales offset a decline in new order sales. The stock was on track for the biggest one-day gain since it ran up 30.6% on Oct. 10, 2002. The company added 98,000 new customers during the quarter, down from 117,000 last year, while advertising costs of acquiring a customer rose to $49 from $45.
So where is the stock price headed next, the chart suggests price has room to move up at least $3 before buyers starting meeting any sellers?
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
Hard to deny, there is big money in pets.
People will spend huge amount of resources on their cats and dogs. This can rival, at times, the money put into their kids.
Some companies are well aware of this and take advantage of it.
Totally, agree, we live in a capitalist society. If there is an opportunity be sure someone is going to try and exploit it.
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