NEW YORK, May 26, 2026, 04:16 ET
PetMed Express (PETS) opened Tuesday trading just above $2 as investors looked at turnaround hopes and eyed new governance steps. Shares recently changed hands at $2.12, off 2.3%. That puts the company’s market value close to $44.5 million. By comparison, Chewy was valued at about $8.8 billion and Petco at $763.8 million.
Timing is a factor here. U.S. markets just reopened after being closed for Memorial Day on Monday, and Nasdaq trades from 9:30 a.m. to 4 p.m. Eastern. PetMed heads into a week cut short by the holiday, with the upcoming corporate calendar—not any new product—drawing attention.
PetMed said in an SEC filing its 2026 annual meeting will take place virtually Aug. 11. The deadline for shareholder proposals under Rule 14a-8 and proxy-access director nominations is May 31, according to the filing.
The deadline gives investors a fixed date to watch after a tough run for the company. For the quarter ended Dec. 31, PetMed posted a 21.7% sales drop to $40.7 million. Net loss increased to $10.6 million, or 50 cents a share. Gross margin dropped to 23.3%, down from 31.0%. Cash and cash equivalents were $26.9 million.
PetMed sells both prescription and non-prescription medications for pets along with food, supplements and services. But the business is getting tougher. The latest annual report names vets, specialty stores and the company’s own suppliers’ online shops as rivals. It also warns that big retailers jumping into pet pharmacy could push for more discounts, lower unit prices, and squeeze gross profit.
PetMeds’ easiest-to-understand growth story is the April 22 deal with Rural King. Under this tie-up, PetMeds brings pharmacy infrastructure, licensed pharmacists, and online tools to back a white-label pet pharmacy. In practice, PetMeds runs the pharmacy behind the scenes, but the service appears under the retailer’s own branding.
Leslie Campbell, who chairs PetMed and serves as interim CEO, said the deal is an “important step” for the company’s growth plans. Rural King COO Michael Ladd said the partnership would provide “comprehensive pet pharmacy services” for the retailer’s shoppers. GlobeNewswire
But the picture could shift. The company’s quarterly filing pointed to weaker reorders mostly in prescription medication sales. Customer acquisition costs climbed to $90 from $66 during the quarter. The company also took a $2.1 million non-cash inventory write-down, cutting the value of inventory on paper. If these issues keep up, the new retail channel may not lift margins soon.
PetMed faces two tests right now: whether sales through the Rural King partnership can deliver, and whether its pet pharmacy unit can stop the drop. The May 31 proposal deadline lands with both questions still open, but does put governance in focus again as shares trade in the low $2s.
