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PetMed Express Inc. (PETS-13.28%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing a decrease in net sales to $52,984,000 from $65,317,000 in the same quarter the previous year. This decrease is attributed to a strategic reduction in advertising and broader macroeconomic factors.
Reorder sales fell to $45,076,000 from $54,067,000, while new order sales decreased to $6,075,000 from $8,803,000. Membership fees also declined to $1,833,000 from $2,447,000.
Cost of sales for the quarter was $38,075,000, representing 71.9% of sales, compared to 72.6% in the same quarter of the previous year. The gross profit margin increased slightly to 28.1% from 27.4%.
General and administrative expenses decreased to $10,786,000 from $13,425,000, primarily due to reduced stock-based compensation expenses and payroll costs.
Advertising expenses were reduced to $2,987,000 from $5,762,000, reflecting a strategic reduction in gross media spend.
The company reported a net loss of $707,000 for the quarter, compared to a net loss of $2,027,000 in the previous year. The loss per share was $0.03, unchanged from the previous year.
Cash and cash equivalents at the end of the period were $50,101,000, down from $55,296,000 at the beginning of the period.
The filing also discusses ongoing legal proceedings, including a class action lawsuit related to alleged misleading pricing practices.
PetMed Express identified material weaknesses in its internal controls over financial reporting, specifically in the areas of tax calculations and information technology general controls.
The company is implementing remediation plans to address these issues, including enhancing oversight and documentation processes.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the PetMed Express Inc. quarterly 10-Q report dated February 10, 2025. To report an error, please email earnings@qz.com.