PetMed Express (PETS) 8-K Announces Its First Quarter Financial Results

Exhibit 99.1

PETMED EXPRESS D/B/A 1-800-PETMEDS

ANNOUNCES ITS FIRST QUARTER FINANCIAL RESULTS

Pompano Beach, Florida, July 19, 2010 - PetMed Express, Inc. (NASDAQ: PETS) today announced its financial results for the quarter ended June 30, 2010.  Net sales for the quarter ended June 30, 2010 were $74.4 million, compared to $77.2 million for the quarter ended June 30, 2009, a decrease of 3.6%.  Net income was $7.2 million, or $0.32 diluted per share, for the quarter ended June 30, 2010, compared to net income of $8.1 million, or $0.36 diluted per share, for the quarter ended June 30, 2009, an 11% decrease to EPS.  Reorder sales increased by 7%, from $54.0 million to $57.6 million for the quarters ended June 30, 2009 and 2010, respectively.

Menderes Akdag, CEO and President, commented: “It has been a challenging quarter due to a reduction in our advertising exposure, which is attributed to the lack of availability of television remnant space at affordable prices, combined with consumers giving greater consideration to price and reducing their usage.  Our online sales increased by 1% to $52.3 million for the quarter, compared to $51.8 million for the prior quarter, with approximately 70% of our orders being generated from our website during the quarter compared to 67% in the prior quarter.  We continued leveraging our operating expenses, which as a percent of sales improved 91 basis points compared to the same quarter in the prior year.  Our focus in fiscal 2011 is conversion optimization, and the expansion of our product offerings into pet supplies.”

This morning at 8:30 A.M. Eastern Time, Mr. Akdag will host a conference call to review the quarter’s financial results.  To access the call, which is open to the public, please dial (888) 455-1758 (toll free) or (210) 234-0009.  Callers will be required to supply PETMEDS as the passcode.  For those unable to participate in the live event, the call will be available for replay from 10:00 A.M. on July 19, 2010 until August 2, 2010 at 11:59 P.M.  To access the replay, call (866) 421-3831 (toll free) or (203) 369-0808, and enter passcode 5500.

Founded in 1996, PetMed Express is America’s Largest Pet Pharmacy, delivering prescription and non-prescription pet medications and other health products for dogs, cats, and horses at competitive prices direct to the consumer through its 1-800-PetMeds toll free number and on the Internet through its website atwww.1800petmeds.com.

This press release may contain “forward-looking” statements, as defined in the Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission, that involve a number of risks and uncertainties, including the Company’s ability to meet the objectives included in its business plan.  Important factors that could cause results to differ materially from those indicated by such “forward-looking” statements are set forth in Management’s Discussion and Analysis of Financial Condition and Results of Operations in the PetMed Express Annual Report on Form 10-K for the year ended March 31, 2010.  The Company’s future results may also be impacted by other risk factors listed from time to time in its SEC filings, including, but not limited to, the Company's Form 10-Q and its Annual Report on Form 10-K.

For investment relations contact PetMed Express, Inc., Bruce S. Rosenbloom, CFO, 954-979-5995.

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Exhibit 99.1 Page 1 of 4

PETMED EXPRESS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
		June 30,		March 31,
		2010		2010
ASSETS
Current assets:
Cash and cash equivalents	$	66,886,745	$	53,143,450
Short term investments - available for sale		10,025,067		-
Accounts receivable, less allowance for doubtful
accounts of $6,667 and $5,236, respectively		2,670,883		2,097,057
Inventories - finished goods		15,784,538		29,063,640
Prepaid expenses and other current assets		882,714		610,067
Deferred tax assets		1,457,400		1,255,282
Prepaid income taxes		-		329,388
Total current assets		97,707,347		86,498,884
Long term investments		12,392,125		12,392,125
Property and equipment, net		4,209,054		4,428,849
Intangible asset		850,000		850,000
Total assets	$	115,158,526	$	104,169,858
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	6,019,543	$	4,775,665
Income taxes payable		3,841,651		-
Accrued expenses and other current liabilities		2,474,552		2,311,589
Total current liabilities		12,335,746		7,087,254
Deferred tax liabilities		803,556		225,391
Total liabilities:		13,139,302		7,312,645
Commitments and contingencies
Shareholders' equity:
Preferred stock, $.001 par value, 5,000,000 shares authorized;
2,500 convertible shares issued and outstanding with a
liquidation preference of $4 per share		8,898		8,898
Common stock, $.001 par value, 40,000,000 shares authorized;
22,980,907 and 22,989,618 shares issued and outstanding, respectively		22,981		22,990
Additional paid-in capital		2,859,265		2,627,807
Retained earnings		99,231,244		94,305,393
Less: treasury stock, at cost; 195 and 0 shares, respectively		(3,375)		-
Accumulated other comprehensive loss		(99,789)		(107,875)
Total shareholders' equity		102,019,224		96,857,213
Total liabilities and shareholders' equity	$	115,158,526	$	104,169,858

Exhibit 99.1 Page 2 of 4

PETMED EXPRESS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
		Three Months Ended
		June 30,
		2010		2009
Sales	$	74,368,903	$	77,168,582
Cost of sales		47,143,032		47,882,455
Gross profit		27,225,871		29,286,127
Operating expenses:
General and administrative		6,207,998		6,493,360
Advertising		8,840,272		9,871,809
Depreciation and amortization		350,363		322,335
Total operating expenses		15,398,633		16,687,504
Income from operations		11,827,238		12,598,623
Other income:
Interest income, net		66,027		61,420
Other, net		2,622		1,585
Total other income		68,649		63,005
Income before provision for income taxes		11,895,887		12,661,628
Provision for income taxes		4,671,291		4,586,852
Net income	$	7,224,596	$	8,074,776
Net income per common share:
Basic	$	0.32	$	0.36
Diluted	$	0.32	$	0.36
Weighted average number of common shares outstanding:
Basic		22,721,949		22,523,962
Diluted		22,867,663		22,681,612
Cash dividends declared per common share	$	0.10	$	-

Exhibit 99.1 Page 3 of 4

PETMED EXPRESS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
		Three Months Ended
		June 30,
		2010		2009
Cash flows from operating activities:
Net income	$	7,224,596	$	8,074,776
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization		350,363		322,335
Share based compensation		522,502		337,027
Deferred income taxes		376,047		96,728
Bad debt expense		7,893		23,378
(Increase) decrease in operating assets
and increase (decrease) in liabilities:
Accounts receivable		(581,719)		(455,506)
Inventories - finished goods		13,279,102		10,644,326
Prepaid income taxes		329,388		361,743
Prepaid expenses and other current assets		(272,647)		(170,978)
Accounts payable		1,243,878		5,460,799
Income taxes payable		3,841,651		4,019,300
Accrued expenses and other current liabilities		142,946		543,055
Net cash provided by operating activities		26,464,000		29,256,983
Cash flows from investing activities:
Net change in investments		(10,016,981)		-
Purchases of property and equipment		(130,568)		(308,492)
Net cash used in investing activities		(10,147,549)		(308,492)
Cash flows from financing activities:
Dividends paid		(2,278,728)		-
Purchases of treasury stock		(670,989)		-
Proceeds from the exercise of stock options		252,356		319,763
Tax benefit related to stock options exercised		124,205		109,082
Net cash (used in) provided by financing activities		(2,573,156)		428,845
Net increase in cash and cash equivalents		13,743,295		29,377,336
Cash and cash equivalents, at beginning of period		53,143,450		30,126,041
Cash and cash equivalents, at end of period	$	66,886,745	$	59,503,377
Supplemental disclosure of cash flow information:
Property and equipment purchases in accounts payable	$	-	$	617,522
Dividends payable in accrued expenses	$	20,017	$	-

Exhibit 99.1 Page 4 of 4