PETS - PetMed Express falls after earnings fall short of expectations.

PetMed Express swung lower in after-hours trading on Monday after the pet retailer missed estimates with its FQ3 earnings report.

Sales fell 3.0% during the quarter to $58.9M and adjusted EBITDA was $2.7M vs. $7.6M a year ago. Gross profit was $15.24M vs. $17.72M a year ago.

PetMeds reported a 9% increase in new customers to mark the first customer increase in 2.5 years.

Based on a sales tax assessment received and accrued in FQ2, the company initiated a process to evaluate the potential for further sales tax contingencies.

"We are confident that our investments in the core PetMeds business, our unique on-demand digital veterinarian and pet telemedicine service and our recently announced acquisition of PetCareRx, will position PetMeds for future long-term growth," said CEO Matt Hulett.

PetMed ( NASDAQ: PETS ) fell 6.78% psotmarket, but still trades above its 50-day, 100-day, and 200-day moving averages.

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