PetMed Express, Inc [NASDAQ: PETS] was a big gainer in Monday’s trading session. It gained by 33.74% to close the day at $26. This followed strong Q2 results that beat expectations. In Q2, the company recorded net sales of $69.9 million a decline of 2% as compared to the same quarter in 2018 when it had net sales of $71.4 million. However, the company’s reorder sales, gross margins and operating margins improved in the quarter.
Reorder sales rose by 1.4% to hit $61.9 million in the quarter. Gross margins rose from 27.3% to 28.6% in the quarter. On their part, operating margins rose by 430 points to 12% from a low of 7%. According to the company CEO, Menderes Akdag, the management is encouraged by the improvement in reorder sales and operating margins. He attributed the growth in the company’s ability to obtain direct purchasing relationships with top manufacturers. He also attributed it to positive policies such as minimum advertised price (MAP) by some manufacturers.
The company also launched a rewards program dubbed, the PetMeds Reward Program. This program will help customers accumulate points and redeem them for discounts in the future.
Looking at its price action, this stock opened with a gap up and with high volumes in Monday’s session. PETS opened the day at $22.98 and oscillated between $22.98 and $26.86 before closing the day at $26.86. Volumes in the day stood at 7.58 million. This gap up saw it push above key resistance at $24, a good indicator that bulls are in control, and could drive it further up. Such a continuation is visible in pre-market trading where PETS is up by 0.50% to trade at $26.13.
About PetMed Express Inc
PetMed Express Inc is a pet pharmacy that operates in the U.S. The company markets both prescription and non-prescription drugs for cats and dogs. The company has its headquarters in Delray Beach, Florida.