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PetMed (NASDAQ:PETS) stock tumbled 28% to $6.69 on Tuesday during pre-market hours of trading as the company said in its Q2 results that dividends will be suspended for the company to invest in projects and initiatives that can give better results. The company has seen 10 consecutive quarters of declaring a $0.30 dividend per share.
CEO and President Matt Hulett commented, “..The pet care industry continues to grow and evolve and we believe we have opportunities to take advantage of that growth and drive higher returns to our shareholders.”
Net sales touched $71M, a 9% surge from last year, missing estimates by $5M.
A 25% Y/Y surge was seen in new customers, representing the fourth consecutive quarter of new customer growth. The figures include new customers from the PetCareRx acquisition.
Adjusted EBITDA dropped 55% to $3.2M. Net loss per share of $0.00 missed consensus by $0.09. This compares to $0.13 EPS last year in the same quarter.
