Exhibit 99.1

PETMED EXPRESS D/B/A 1-800-PETMEDS ANNOUNCES ITS THIRD QUARTER FINANCIAL RESULTS

AND ITS $0.19 PER SHARE QUARTERLY DIVIDEND

Third Quarter New Order Sales Increased 4.4%

Third Quarter Sales Increased 3.8%

Delray Beach, Florida, January 23, 2017 - PetMed Express, Inc. (NASDAQ: PETS) today announced its financial results for the quarter ended December 31, 2016. Net sales for the quarter ended December 31, 2016 were $52.9 million, compared to $50.9 million for the quarter ended December 31, 2015, an increase of 3.8%. Net sales for the nine months ended December 31, 2016 were $186.1 million, compared to $179.3 million for the nine months ended December 31, 2015, an increase of 3.8%. The increase in sales for the quarter ended December 31, 2016 can be attributed to increased new order sales, which increased 4.4%, and reorder sales, which increased 3.7%. Net income for the quarter ended December 31, 2016 was $4.8 million, or $0.24 diluted per share, compared to net income of $4.9 million, or $0.24 diluted per share, for the quarter ended December 31, 2015, a 1.4% decrease to net income. Net income for the nine months ended December 31, 2016 was $16.3 million, or $0.80 diluted per share, compared to net income of $15.1 million, or $0.75 diluted per share, for the nine months ended December 31, 2015, a 7.7% increase to net income. Online sales for the quarter ended December 31, 2016 increased 5.6% to $43.8 million from $41.5 million for the same period the prior year. The Company’s online sales for the quarter ended December 31, 2016 were approximately 83% of all sales, compared to 81% for the same quarter the prior year.

Menderes Akdag, CEO and President, commented: “We are pleased to announce that the Company has officially moved to Delray Beach, having completed this transition in December 2016. Despite the transition, we continued to see sales growth in the December quarter where we saw increases in both new order and reorder sales. Our average order size increased to $81 for the quarter ended December 31, 2016, compared to $78 for the same quarter in the prior year. We were also encouraged with our advertising efficiency, as our new customer acquisition costs were reduced to $32 for the quarter ended December 31, 2016 compared to $41 for the same quarter in the prior year. Cash flow from operations was $31.6 million for the nine months ended December 31, 2016, compared to $22.6 million for the nine months ended December 31, 2015, with the majority of the increase due to a reduction in inventory.”

The Board of Directors declared a quarterly dividend of $0.19 per share on the Company’s common stock. The dividend will be payable on February 17, 2017, to shareholders of record at the close of business on February 6, 2017. The Company intends to continue to pay regular quarterly dividends; however the declaration and payment of future dividends is discretionary and will be subject to a determination by the Board of Directors each quarter following its review of the Company’s financial performance.

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 (203) 827-7025. 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 January 23, 2017 until February 6, 2017 at 11:59 P.M. To access the replay, call (888) 568-0521 (toll free) or (402) 998-1495 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 and cats at competitive prices direct to the consumer through its 1-800-PetMeds toll free number and on the Internet through its website at www.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, 2016. 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, 561-526-4444.

Exhibit 99.1 Page 1 of 4

PETMED EXPRESS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except for per share data)

	December 31,		March 31,
	2016		2016
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	47,904	$	37,639
Accounts receivable, less allowance for doubtful accounts of $12 and $13, respectively		1,544		1,724
Inventories - finished goods		14,925		25,586
Prepaid expenses and other current assets		2,441		2,435
Prepaid income taxes		875		243
Total current assets		67,689		67,627
Noncurrent assets:
Property and equipment, net		29,071		20,929
Intangible assets		860		860
Deferred tax assets		–		863
Total noncurrent assets		29,931		22,652
Total assets	$	97,620	$	90,279
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	5,391	$	5,004
Accrued expenses and other current liabilities		2,543		2,080
Total current liabilities		7,934		7,084
Deferred tax liabilities		301		–
Total liabilities		8,235		7,084
Commitments and contingencies
Shareholders' equity:
Preferred stock, $.001 par value, 5,000 shares authorized; 3 convertible shares issued and outstanding with a liquidation preference of $4 per share		9		9
Common stock, $.001 par value, 40,000 shares authorized; 20,527 and 20,447 shares issued and outstanding, respectively		21		20
Additional paid-in capital		6,430		4,871
Retained earnings		82,925		78,295
Total shareholders' equity		89,385		83,195
Total liabilities and shareholders' equity	$	97,620	$	90,279

Exhibit 99.1 Page 2 of 4

PETMED EXPRESS, INC. AND SUBSIDIARIES

 CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 (In thousands, except for per share amounts) (Unaudited)

	Three Months Ended					Nine Months Ended
	December 31,					December 31,
	2016		2015			2016		2015
Sales	$	52,866	$	50,933		$	186,144	$	179,292
Cost of sales		36,223		34,179			128,985		120,659
Gross profit		16,643		16,754			57,159		58,633
Operating expenses:
General and administrative		5,361		4,977			17,206		16,164
Advertising		3,170		3,988			13,312		18,122
Depreciation		457		167			855		544
Total operating expenses		8,988		9,132			31,373		34,830
Income from operations		7,655		7,622			25,786		23,803
Other income:
Interest income, net		36		55			96		160
Other, net		130		(4	)		206		(12	)
Total other income		166		51			302		148
Income before provision for income taxes		7,821		7,673			26,088		23,951
Provision for income taxes		2,998		2,783			9,772		8,802
Net income	$	4,823	$	4,890		$	16,316	$	15,149
Net change in unrealized loss on short term investments		–		(14	)		–		(33	)
Comprehensive income	$	4,823	$	4,876		$	16,316	$	15,116
Net income per common share:
Basic	$	0.24	$	0.24		$	0.81	$	0.75
Diluted	$	0.24	$	0.24		$	0.80	$	0.75
Weighted average number of common shares outstanding:
Basic		20,253		20,145			20,223		20,115
Diluted		20,408		20,251			20,373		20,232
Cash dividends declared per common share	$	0.19	$	0.18		$	0.57	$	0.54

Exhibit 99.1 Page 3 of 4

PETMED EXPRESS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 (In thousands) (Unaudited)

	Nine Months Ended
	December 31,
	2016			2015
Cash flows from operating activities:
Net income	$	16,316		$	15,149
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		855			544
Share based compensation		1,444			1,189
Deferred income taxes		1,164			(109	)
Bad debt expense		368			243
(Increase) decrease in operating assets and increase (decrease) in liabilities:
Accounts receivable		(188	)		323
Inventories - finished goods		10,661			6,207
Prepaid income taxes		(632	)		(334	)
Prepaid expenses and other current assets		857			(895	)
Accounts payable		387			212
Income taxes payable		–			(50	)
Accrued expenses and other current liabilities		410			156
Net cash provided by operating activities		31,642			22,635
Cash flows from investing activities:
Net change in investments		–			(50	)
Purchases of property and equipment		(9,860	)		(177	)
Net cash used in investing activities		(9,860	)		(227	)
Cash flows from financing activities:
Dividends paid		(11,632	)		(10,984	)
Tax adjustment related to restricted stock		115			92
Net cash used in financing activities		(11,517	)		(10,892	)
Net increase in cash and cash equivalents		10,265			11,516
Cash and cash equivalents, at beginning of period		37,639			35,613
Cash and cash equivalents, at end of period	$	47,904		$	47,129
Supplemental disclosure of cash flow information:
Cash paid for income taxes	$	9,246		$	9,203
Prepaid property and equipment in current assets	$	863		$	–
Dividends payable in accrued expenses	$	196		$	185

Exhibit 99.1 Page 4 of 4