PetMed Express Earnings: Its Bite Is Worse Than Its Bark
PetMed Express (NASDAQ: PETS) is at the intersection of at least three hot emerging trends. Unfortunately for investors, Monday afternoon's earnings report was another head-on collision.
The direct seller of prescription and nonprescription pet medications and supplies through its 1-800-PetMeds phone line and website should be an obvious beneficiary of last year's pandemic-fueled spike in pet adoptions. PetMed Express should also be a beneficiary of consumers shifting to the convenience of home delivery over brick-and-mortar shopping trips. The third trend working in its favor is the humanization of pets. We're treating our canines and felines as if they're part of the family, and with that comes better attention to their health and wellness.
Unfortunately for PetMed Express investors, its fundamentals seem to have missed the memo. Results in this week's fiscal second-quarter report fell well short of Wall Street targets. Business is retreating in the most favorable of operating climates, and a push to expand into new markets seems dangerous when it can't master its own specialty.
Source Fool.com
