June 25, 2021
June 25th is a favored day for dog lovers this year. National Take Your Dog to Work Day means your furry friends can join you in your work environment. And who wouldn’t want a few doggos to pet during the day? A Johns Hopkins report concludes that simply petting a dog lowers the stress hormone cortisol, while the social interaction between people and their dogs increases levels of the feel-good hormone oxytocin.
The pet industry is a massive one, with the American Pet Products Association estimating Americans spent almost $99 billion on their animal companions in 2020. Leading the list of expenditures were pet food and pet treats, followed by veterinary care and products. And though many of us are still working from home – making every day Take Your Dog to Work Day – let’s take a look at how some of the brands that keep your favorite canine happy and healthy are faring.
Chewy, Inc. (Tii:CHWY) became an increasingly important destination during the pandemic as pet owners flocked to the online pet retailer for food, supplies, and toys during the lockdown. In fact, Chewy grew its customer base by 43% last year. This contributed to a 47% rise in net sales to $7.15 billion for fiscal 2020. Capitalizing on the rise in consumer demand for remote services, Chewy recently expanded its telehealth service, Connect with a Vet, to include a video consultation feature. This new feature gives pet parents the ability to preschedule a virtual vet consultation and access real-time healthcare advice with licensed veterinarians. Though off its highs, Chewy shares have gained some 70% for the trailing 12 months ended June 24, 2021.
Consumers with pets love to splurge on their animal friends. As a provider of premium foods that include fresh meats, vegetables and fruits farmed locally, Freshpet, Inc. (Tii:FRPT) is an appealing brand for consumers looking to spoil their pets. The company’s sales increased by nearly 30% last year and more than 33% for the first quarter of 2021. Further, the company raised its 2025 household penetration target by 37% to 11 million households, which would enable the 15-year-old American pet food company to raise its 2025 net sales target to $1.25 billion. Freshpet shares have gained more than 100% for the 12 months ended June 24, 2021.
It's an unfortunate truth that having a pet can sometimes lead to costly medical expenses, often making pet insurance a necessity. With over 600,000 pets enrolled, Trupanion, Inc. (Tii:TRUP) is one of America’s largest insurance providers for cats and dogs. With its eye on expansion overseas and the goal to double its addressable market of veterinary hospitals by 2035, the insurer hired its first Executive Vice President of International Business. The new EVP will be responsible for developing Trupanion’s international plans for growth across existing markets such as Australia and driving entry and growth into new international markets, including Japan, UK, Brazil and Western Europe. The company’s shares have gained more than 160% for the 12 months ended June 24, 2021.
A leading pet medication and wellness company, PetIQ, Inc. (Tii:PETQ) has a strong line of pet-related brands that include PetArmor Flea & Tick, De-Wormers, Skin & Coat Care, Ear Care, Joint Care; the SENTRY line of products to reduce stress and eliminate destructive behaviors; Advecta Flea & Tick protection; Minties dental treats; and Sergeant’s Flea & Tick and Grooming products. The company reported record net first-quarter sales of $254.3 million compared to $186.8 million, increasing 36.2%. Sales were driven by continued Product segment growth, including contribution from Capstar, a leading oral over-the-counter flea treatment product. PetIQ acquired Capstar in 2020 for $95 million in cash. The company’s shares have gained more than 18% for the 12 months ended June 24, 2021.
As the leading animal health company, Zoetis Inc. (Tii:ZTS) is in the business of keeping our furry family members healthy. The world’s largest producer of medicine and vaccinations for pets and livestock was spun-off from Pfizer Inc. (Tii:PFE) in 2013 and now serves veterinarians, livestock producers and people who raise and care for farm and companion animals in more than 100 countries. On the philanthropic front, Zoetis committed $35 million over five years through the newly established Zoetis Foundation, which will advance opportunities for veterinarians and farmers, with grantmaking focused on enabling thriving professions and livelihoods. The company’s shares have gained some 40% for the 12 months ended June 22, 2021.
Even if you don’t have a dog, give a pet an extra bit of love this day, whether working in the office or at home.