UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                      Washington D.C. 20549

                            FORM 10-Q

                           (Mark One)

   [X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                 SECURITIES EXCHANGE ACT OF 1934

           For the quarterly period ended December 31, 2007

                               or

   [ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                 SECURITIES EXCHANGE ACT OF 1934

         For the transition period from ________ to ________

                Commission file number: 000-28827
                     ______________________

                      PETMED EXPRESS, INC.
     (Exact name of registrant as specified in its charter)
                     ______________________

          FLORIDA                                 65-0680967
(State or other jurisdiction of                (I.R.S. Employer
incorporation or organization)                Identification No.)

       1441 S.W. 29th Avenue, Pompano Beach, Florida 33069
  (Address of principal executive offices, including zip code)

                         (954) 979-5995
      (Registrant's telephone number, including area code)

                               N/A
      (Former name, former address and former fiscal year,
                  if changed since last report)

Indicate  by check mark whether the registrant (1) has filed  all
reports  required  to be filed by Section  13  or  15(d)  of  the
Securities  Exchange Act of 1934 during the preceding  12  months
(or  for such shorter period that the registrant was required  to
file  such  reports),  and (2) has been subject  to  such  filing
requirements for the past 90 days.
Yes [X]  No [ ]

Indicate  by  check  mark  whether  the  registrant  is  a  large
accelerated  filer,  an accelerated filer, or  a  non-accelerated
filer.    See  definition  of  "accelerated  filer"   or   "large
accelerated  filer"  in Rule 12b-2 of the  Exchange  Act.  (Check
one):

  Large accelerated filer [ ]        Accelerated filer [X]
  Non-accelerated filer [ ]

Indicate by check mark whether the registrant is a shell  company
(defined in Rule 12b-2 of the Exchange Act).
Yes [ ]  No [X]

Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date:
24,184,312 Common Shares, $.001 par value per share at February
1, 2008.




PART I - FINANCIAL INFORMATION

ITEM 1.   FINANCIAL STATEMENTS.

              PETMED EXPRESS, INC. AND SUBSIDIARIES
              CONDENSED CONSOLIDATED BALANCE SHEETS



                                              December 31,       March 31,
                                                  2007             2007
                                              ------------     ------------
                                              (UNAUDITED)
                                                       
                       ASSETS
                       ------

Current assets:
   Cash and cash equivalents                $    2,140,272   $      316,470
   Temporary investments                        44,860,000       39,125,000
   Accounts receivable, less allowance
     for doubtful accounts of $16,000
     and $28,000, respectively                     788,746        1,369,521
   Inventories - finished goods                 20,112,153       16,086,207
   Prepaid income taxes                            213,750             -
   Prepaid expenses and other
     current assets                                902,266        1,071,171
                                              ------------     ------------
          Total current assets              $   69,017,187   $   57,968,369

   Property and equipment, net                   1,907,580        1,990,578
   Deferred income taxes                         1,430,554          894,540
   Intangible asset                                365,000          365,000
                                              ------------     ------------

Total assets                                $   72,720,321   $   61,218,487
                                              ============     ============


       LIABILITIES AND SHAREHOLDERS' EQUITY
       ------------------------------------

Current liabilities:
   Accounts payable                         $    2,660,589   $    5,859,756
   Income taxes payable                               -             229,321
   Accrued expenses and other
     current liabilities                         1,791,632        1,265,837
                                              ------------     ------------

Total liabilities                                4,452,221        7,354,914
                                              ------------     ------------

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;
     24,313,231 and 24,309,417 shares
     issued, respectively                           24,298           24,309
   Additional paid-in capital                   14,678,352       15,213,254
   Retained earnings                            53,735,904       38,617,112
   Less treasury stock, at cost 14,764
     and 0 shares, respectively                   (179,352)            -
                                              ------------     ------------

          Total shareholders' equity            68,268,100       53,863,573
                                              ------------     ------------

Total liabilities and shareholders' equity  $   72,720,321   $   61,218,487
                                              ============     ============


See accompanying notes to condensed consolidated financial statements.


                                  1



              PETMED EXPRESS, INC. AND SUBSIDIARIES
           CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                           (UNAUDITED)



                                         Three Months Ended               Nine Months Ended
                                            December 31,                    December 31,
                                       2007            2006             2007            2006
                                   ------------    ------------    ------------    ------------
                                                                     
Sales                            $   37,348,867  $   31,352,277  $  147,913,299  $  125,838,384
Cost of sales                        22,175,847      18,563,400      90,390,635      76,002,541
                                   ------------    ------------    ------------    ------------

Gross profit                         15,173,020      12,788,877      57,522,664      49,835,843
                                   ------------    ------------    ------------    ------------

Operating expenses:
  General and administrative          4,542,522       4,022,852      15,502,308      12,792,177
  Advertising                         4,170,113       4,771,341      20,725,021      20,770,700
  Depreciation and amortization         155,385         129,355         435,034         395,507
                                   ------------    ------------    ------------    ------------
Total operating expenses              8,868,020       8,923,548      36,662,363      33,958,384
                                   ------------    ------------    ------------    ------------

Income from operations                6,305,000       3,865,329      20,860,301      15,877,459
                                   ------------    ------------    ------------    ------------

Other income (expense):
  Interest income                       454,438         329,141       1,327,691         917,125
  Other, net                            110,416          94,964         535,346         332,129
Loss on disposal of property
  and equipment                               -            -               -             (1,250)
                                   ------------    ------------    ------------    ------------
Total other income (expense)            564,854         424,105       1,863,037       1,248,004
                                   ------------    ------------    ------------    ------------

Income before provision for
   income taxes                       6,869,854       4,289,434      22,723,338      17,125,463

Provision for income taxes            2,459,872       1,535,200       7,604,546       6,306,000
                                   ------------    ------------    ------------    ------------

Net income                       $    4,409,982  $    2,754,234  $   15,118,792  $   10,819,463
                                   ============    ============    ============    ============

Net income per common share:
  Basic                          $         0.18  $         0.11  $         0.63  $         0.45
                                   ============    ============    ============    ============
  Diluted                        $         0.18  $         0.11  $         0.62  $         0.44
                                   ============    ============    ============    ============

Weighted average number of
common shares outstanding:
  Basic                              24,162,552      24,213,937      24,175,567      24,132,289
                                   ============    ============    ============    ============
  Diluted                            24,386,821      24,382,861      24,396,653      24,316,117
                                   ============    ============    ============    ============



See accompanying notes to condensed consolidated financial statements.


                                  2



              PETMED EXPRESS, INC. AND SUBSIDIARIES
         CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                           (UNAUDITED)



                                                             Nine Months Ended
                                                                December 31,
                                                           2007             2006
                                                       ------------     ------------
                                                                

Cash flows from operating activities:
  Net income                                         $   15,118,792   $   10,819,463
  Adjustments to reconcile net income to net
    cash provided by operating activities:
      Depreciation and amortization                         435,034          395,507
      Share based compensation                            1,237,893          777,426
      Deferred income taxes                                (536,014)        (224,737)
      Loss on disposal of property and equipment               -               1,250
      Bad debt expense                                       16,508           16,038
      (Increase) decrease in operating assets
        and increase (decrease) in liabilities:
          Accounts receivable                               564,267          218,592
          Inventories - finished goods                   (4,025,946)       4,966,371
          Prepaid income taxes                             (213,750)        (846,045)
          Prepaid expenses and other current
            assets                                          168,905         (550,000)
          Other assets                                         -              14,167
          Accounts payable                               (3,199,167)         599,445
          Income taxes payable                             (229,321)        (958,318)
          Accrued expenses and other current
            liabilities                                     525,795         (118,557)
                                                       ------------     ------------
Net cash provided by operating activities                 9,862,996       15,110,602
                                                       ------------     ------------

Cash flows from investing activities:
  Net change in temporary investments                    (5,735,000)     (15,250,000)
  Purchases of property and equipment                      (352,036)        (824,416)
  Net proceeds from the sale of property
    and equipment                                              -                 400
                                                       ------------     ------------
Net cash used in investing activities                    (6,087,036)     (16,074,016)
                                                       ------------     ------------

Cash flows from financing activities:
  Purchases of treasury stock                            (4,868,492)            -
  Proceeds from the exercise of stock options             2,648,703          435,064
  Tax benefit related to stock options exercised            267,631          231,037
                                                       ------------     ------------
Net cash (used in) provided by financing
  activities                                             (1,952,158)         666,101
                                                       ------------     ------------

Net increase (decrease) in cash and
  cash equivalents                                        1,823,802         (297,313)
Cash and cash equivalents, at beginning of period           316,470          366,907
                                                       ------------     ------------

Cash and cash equivalents, at end of period          $    2,140,272   $       69,594
                                                       ============     ============
Supplemental disclosure of cash flow information:

  Cash paid for income taxes                         $    8,316,000   $    8,104,063
                                                       ============     ============

  Retirement of treasury stock                       $    4,689,140   $         -
                                                       ============     ============



See accompanying notes to condensed consolidated financial statements.


                                  3


              PETMED EXPRESS, INC. AND SUBSIDIARIES
      NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                           (UNAUDITED)

Note 1:  Summary Of Significant Accounting Policies

Organization

  PetMed  Express,  Inc.  and subsidiaries,  d/b/a  1-800-PetMeds
(the  "Company"),  is  a leading nationwide  pet  pharmacy.   The
Company markets prescription and non-prescription pet medications
and  other  health products for dogs, cats, and horses direct  to
the   consumer.   The  Company  offers  consumers  an  attractive
alternative   for   obtaining  pet  medications   in   terms   of
convenience,  price, and speed of delivery.  The Company  markets
its  products  through national television,  online,  and  direct
mail/print  advertising  campaigns, which  aim  to  increase  the
recognition  of the "1-800-PetMeds" brand name, increase  traffic
on its website at www.1800petmeds.com, acquire new customers, and
maximize  repeat purchases.  The majority of all of the Company's
sales  are  to  residents in the United  States.   The  Company's
executive  offices  are located in Pompano Beach,  Florida.   The
Company's  fiscal year end is March 31, and references herein  to
fiscal  2008  or 2007 refer to the Company's fiscal years  ending
March 31, 2008 and 2007, respectively.

Basis of Presentation and Consolidation

  The  accompanying  unaudited Condensed  Consolidated  Financial
Statements have been prepared in accordance with the instructions
to   Form  10-Q  and,  therefore,  do  not  include  all  of  the
information  and  footnotes  required  by  accounting  principles
generally  accepted in the United States of America for  complete
financial   statements.   In  the  opinion  of  management,   the
accompanying Condensed Consolidated Financial Statements  contain
all   adjustments,  consisting  of  normal  recurring   accruals,
necessary to present fairly the financial position of the Company
at  December 31, 2007 and the Statements of Income for the  three
and  nine  months ended December 31, 2007 and 2006 and Statements
of  Cash  Flows for the nine months ended December 31,  2007  and
2006.   The  results of operations for the three and nine  months
ended  December  31, 2007 are not necessarily indicative  of  the
operating  results expected for the fiscal year ending March  31,
2008.   These Condensed Consolidated Financial Statements  should
be  read  in conjunction with the financial statements and  notes
thereto contained in the Company's annual report on Form 10-K for
the fiscal year ended March 31, 2007.  The Condensed Consolidated
Financial Statements include the accounts of PetMed Express, Inc.
and  its wholly owned subsidiaries.  All significant intercompany
transactions have been eliminated upon consolidation.

Use of Estimates

  The  preparation of Condensed Consolidated Financial Statements
in  conformity with accounting principles generally  accepted  in
the   United  States  of  America  requires  management  to  make
estimates  and  assumptions that affect the reported  amounts  of
assets  and  liabilities and disclosure of contingent assets  and
liabilities  at the date of the Condensed Consolidated  Financial
Statements  and  the  reported amounts of revenues  and  expenses
during  the  reporting period.  Actual results could differ  from
those estimates.

Recently Adopted Accounting Standards

  The  Company adopted the provisions of the Financial Accounting
Standards  Board ("FASB") Interpretation No. 48, "Accounting  for
Uncertainty  in  Income  Taxes  -  an  interpretation   of   FASB
Statement  No.  109" ("FIN 48"), in the first quarter  of  fiscal
2008.    Previously,   the   Company  had   accounted   for   tax
contingencies  in  accordance with SFAS  No.  5,  Accounting  for
Contingencies.   As  required by FIN  48,  which  clarifies  SFAS
No.  109, Accounting for Income Taxes, the Company recognizes the
financial  statement  benefit  of  a  tax  position  only   after
determining  that  the relevant tax authority would  more  likely
than  not  sustain  the position following  an  audit.   For  tax
positions meeting the more-likely-than-not threshold, the  amount
recognized in the Condensed Consolidated Financial Statements  is
the   largest  benefit  that  has  a  greater  than  50   percent
likelihood  of being realized upon ultimate settlement  with  the
relevant  tax  authority.   At  the adoption  date,  the  Company
applied  FIN  48  to all tax positions for which the  statute  of
limitations  remained  open.   Upon  implementing  FIN  48,   the
Company   did  not  recognize  any  additional  liabilities   for
unrecognized  tax  positions.  Other than the determination  that
nexus  was established in another state, resulting in a reduction
to  the Company's effective tax rate, the adoption of FIN 48  had
no  material  impact  on  our  condensed  consolidated  financial
position, results of operations, or cash flows.


                                4



  In  June  2006, the FASB's Emerging Issues Task Force  ("EITF")
reached a consensus on Issue No. 06-3, "How Taxes Collected  from
Customers  and  Remitted to Governmental  Authorities  Should  Be
Presented  in  the  Income Statement (That Is, Gross  versus  Net
Presentation)."   The  scope of EITF 06-3  includes  sales,  use,
value  added,  and  some  excise taxes that  are  assessed  by  a
governmental authority on specific revenue-producing transactions
between a seller and customer.  EITF 06-3 requires disclosure  of
the  method of accounting for the applicable assessed  taxes  and
the  amount  of assessed taxes that are included in  revenues  if
they  are  accounted for under the gross method.  EITF  06-3  was
effective for the Company's fiscal year beginning April 1,  2007.
EITF 06-3 will not impact the method for recording these taxes in
the  Company's Condensed Consolidated Financial Statements as the
Company historically has presented sales excluding these taxes.

  The  Company  does not believe that any other recently  issued,
but   not  yet  effective,  accounting  standards,  if  currently
adopted,   will   have  a  material  effect  on   the   Company's
consolidated financial position, results of operations,  or  cash
flows.

Note 2:  Net Income Per Share

  In  accordance  with the provisions of Statement  of  Financial
Accounting  Standards  ("SFAS") No. 128,  "Earnings  Per  Share,"
basic  net  income per common share is computed by  dividing  net
income  available to common shareholders by the weighted  average
number  of common shares outstanding during the period.   Diluted
net  income  per  common share includes the  dilutive  effect  of
potential  stock options exercised, restricted stock  awards  and
the  effects  of  the potential conversion of  preferred  shares,
calculated  using  the treasury stock method.  Outstanding  stock
options  and  convertible preferred shares issued by the  Company
represent the only dilutive effect reflected in diluted  weighted
average shares outstanding.  The following is a reconciliation of
the  numerators  and denominators of the basic  and  diluted  net
income per common share computations for the periods presented:



                                         Three Months Ended               Nine Months Ended
                                            December 31,                    December 31,
                                       2007            2006             2007            2006
                                   ------------    ------------    ------------    ------------
                                                                     
Net income (numerator):

  Net income                     $    4,409,982  $    2,754,234  $   15,118,792  $   10,819,463
                                   ============    ============    ============    ============

Shares (denominator):

  Weighted average number of
    common shares outstanding
    used in basic computation        24,162,552      24,213,937      24,175,567      24,132,289
  Common shares issuable upon
    exercise of stock options
    and restricted stock                214,144         158,799         210,961         173,703
  Common shares issuable upon
    conversion of preferred
    shares                               10,125          10,125          10,125          10,125
                                   ------------    ------------    ------------    ------------
  Shares used in diluted
    computation                      24,386,821      24,382,861      24,396,653      24,316,117
                                   ============    ============    ============    ============

Net income per common share:

  Basic                          $         0.18  $         0.11  $         0.63  $         0.45
                                   ============    ============    ============    ============
  Diluted                        $         0.18  $         0.11  $         0.62  $         0.44
                                   ============    ============    ============    ============


  For the three and nine months ended December 31, 2007 and 2006,
all  common stock options were included in the diluted net income
per share computation as their exercise prices were less than the
average market price of the common shares for the period.

Note 3:  Accounting for Stock-Based Compensation

  The  Company records compensation expense associated with stock
options  in accordance with SFAS No. 123R, "Share Based Payment,"
which  is  a  revision of SFAS No. 123.  The Company adopted  the
modified  prospective  transition  method  provided  under   SFAS
No.  123R.  Under  this  transition method, compensation  expense
associated with stock options recognized in the first quarter  of
fiscal  year  2007, and in subsequent quarters, includes  expense
related  to  the remaining unvested portion of all  stock  option
awards  granted  prior to April 1, 2006, and the  estimated  fair
value of each option award granted was determined on the date  of
grant  using the Black-Scholes option valuation model,  based  on
the  grant  date  fair  value estimated in  accordance  with  the
original provisions of SFAS No. 123.


                                5



  As  a  result  of the adoption of SFAS No. 123R, the  Company's
operating income for the three months ended December 31, 2007 and
2006 includes approximately $197,000 and $223,000 of stock option
compensation  expense, respectively.  Operating  income  for  the
nine   months   ended  December  31,  2007  and   2006   includes
approximately $592,000 and $669,000 of stock option  compensation
expense, respectively.  The compensation expense related  to  all
of   the  Company's  stock-based  compensation  arrangements   is
recorded  as a component of general and administrative  expenses.
As  of  December  31,  2007  and 2006,  there  was  approximately
$465,000    and   $1,288,000,   respectively,   of   unrecognized
compensation  cost  related to non-vested  stock  option  awards,
which  is  expected  to be recognized over a  remaining  weighted
average  vesting period of approximately 2 years.  Cash  received
from  stock options exercised for the three months ended December
31,  2007 and 2006 was $63,000 and $14,000, respectively, and for
the  nine  months ended December 31, 2007 and 2006 was $2,649,000
and  $435,000, respectively.  The income tax benefits from  stock
options  exercised  totaled $268,000 and $231,000  for  the  nine
months ended December 31, 2007 and 2006, respectively.

  The  PetMed  Express, Inc. 1998 Stock Option Plan (the  "Plan")
provides  for  the issuance of qualified options to officers  and
key employees, and nonqualified options to directors, consultants
and  other  service providers, to purchase the  Company's  common
stock.  The Company had reserved 5,000,000 shares of common stock
for  issuance  under the Plan.  The exercise  prices  of  options
issued under the Plan must be equal to or greater than the market
price  of  the Company's common stock as of the date of issuance.
The Company had 389,827 and 668,968 options outstanding under the
Plan  at  December  31,  2007 and 2006,  respectively.    Options
generally vest ratably over a three-year period commencing on the
first anniversary of the grant with respect to options granted to
employees/directors  under  the Plan.   No  options  were  issued
during the quarter.  The 1998 Plan expires on July 31, 2008.

  On  July  28,  2006, the Company received shareholder  approval
for  the  adoption  of  the  2006  Employee  Equity  Compensation
Restricted Stock Plan (the "Employee Plan") and the 2006  Outside
Director Equity Compensation Restricted Stock Plan (the "Director
Plan").  The purpose of the plans is to promote the interests  of
the  Company by securing and retaining both employees and outside
directors.  The Company has reserved 1,000,000 shares  of  common
stock  for  issuance under the Employee Plan.   The  Company  has
reserved  200,000 shares of common stock for issuance  under  the
Director  Plan.  The value of the restricted stock is  determined
based on the market value of the stock at the issuance date.  The
restriction  period  or forfeiture period is  determined  by  the
Company's Board, to be no less than 1 year and no more  than  ten
years.  The Company did not issue any shares of restricted  stock
during  the  quarter.  The Company had 195,025 restricted  common
shares  issued  under  the Employee Plan  and  44,000  restricted
common shares issued under the Director Plan at December 31, 2007
all  shares  of  which were issued subject to  a  restriction  or
forfeiture  period which will lapse ratably on the first,  second
and  third anniversaries of the date of grant, and the fair value
of  which  is  being  amortized over the  three-year  restriction
period.   For the three months ended December 31, 2007 and  2006,
the  Company recognized $248,000 and $65,000 of restricted  stock
compensation expense related to the Employee and Director  Plans,
respectively, and for the nine months ended December 31, 2007 and
2006, the Company recognized $646,000 and $108,000, respectively.
During  the  nine months ended December 31, 2007  and  2006,  the
Company issued 84,650 and 66,625 restricted shares, respectively.

Note 4:  Temporary Investments

  During  fiscal  2007 the Company had reclassified  its  auction
rate  securities  ("ARS")  from  cash  and  cash  equivalents  to
temporary  investments on its balance sheet  in  accordance  with
recent accounting pronouncements.  This reclassification affected
both  the  balance sheet and cash flow statement in fiscal  2007,
but  it  did not affect net income or working capital  in  fiscal
2007.   In accordance with Staff Accounting Bulletin ("SAB")  No.
108,  "Considering  the Effects of Prior Year Misstatements  when
Quantifying  Misstatements in Current Year Financial Statements,"
no  changes  to financial statements issued in prior  years  were
deemed  necessary.  In accordance with "SFAS No. 115,  Accounting
for Certain Investments in Debt and Equity Securities," temporary
investments  are  accounted for as trading  securities.   Trading
securities  are  securities that are bought and held  principally
for  the  purpose  of  selling in the  near  term.   The  Company
believes   that   notwithstanding   the   reclassification,   the
investments in ARS are short term and highly liquid, and  readily
convertible  to known amounts of cash, and that they  present  an
insignificant  risk of change in value due to market  changes  in
interest  rates.  At December 31, 2007 and 2006, the Company  had
$44,860,000    and   $38,100,000   of   temporary    investments,
respectively.


                                6




Note 5:  Commitments and Contingencies

  The   Company   is   a   party   to  routine   litigation   and
administrative   complaints   incidental   to    its    business.
Management does not believe that the resolution of any or all  of
such  routine litigation and administrative complaints is  likely
to  have  a  material  adverse effect on the Company's  financial
condition  or  results of operations.  The  Company  has  settled
complaints  that  had  been filed with various  states'  pharmacy
boards  in the past.  There can be no assurances made that  other
states  will  not  attempt to take similar  actions  against  the
Company  in the future.  Legal costs related to the above matters
are expensed as incurred.





































                                7



ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
         CONDITION AND RESULTS OF OPERATIONS.

Executive Summary

  PetMed  Express  was incorporated in the state  of  Florida  in
January 1996.  The Company's common stock is traded on the NASDAQ
Global  Select  Market ("NASDAQ") under the symbol  "PETS."   The
Company  began  selling  pet medications  and  other  pet  health
products  in  September 1996.  Presently, the  Company's  product
line   includes  approximately  750  of  the  most  popular   pet
medications and other health products for dogs, cats, and horses.

  The  Company  markets its products through national television,
online, and direct mail/print advertising campaigns which  direct
consumers  to  order  by phone or on the  Internet,  and  aim  to
increase the recognition of the "1-800-PetMeds" brand name.   The
Company's  sales  consist  of  products  sold  mainly  to  retail
consumers  and minimally to wholesale customers.  Typically,  the
Company's customers pay by credit card or check at the  time  the
order  is  shipped.  The Company usually receives cash settlement
in  two  to  three banking days for sales paid by  credit  cards,
which minimizes the accounts receivable balances relative to  the
Company's  sales.   The  Company's  sales  returns  average   was
approximately  1.4% for the quarter ended on December  31,  2007,
compared  to 1.6% for the quarter ended December 31,  2006.   The
three-month  average  retail purchase was approximately  $76  per
order  for the quarter ended December 31, 2007, compared  to  $75
per  order  for the quarter ended December 31, 2006.   The  nine-
month  average  retail purchase was approximately $80  per  order
for  the nine months ended December 31, 2007, compared to $79 per
order for the nine months ended December 31, 2006.

Critical Accounting Policies

  Our  discussion and analysis of our financial condition and the
results   of   our  operations  are  based  upon  our   Condensed
Consolidated  Financial Statements and the data used  to  prepare
them.   The Company's Condensed Consolidated Financial Statements
have  been  prepared  in  accordance with  accounting  principles
generally  accepted  in  the United States  of  America.   On  an
ongoing   basis  we  re-evaluate  our  judgments  and   estimates
including   those   related  to  product  returns,   bad   debts,
inventories,  long-lived assets, income  taxes,  litigation,  and
contingencies.   We  base  our estimates  and  judgments  on  our
historical experience, knowledge of current conditions,  and  our
beliefs  of what could occur in the future considering  available
information.   Actual  results may differ  from  these  estimates
under  different  assumptions or conditions.  Our  estimates  are
guided by observing the following critical accounting policies.

Revenue recognition

   The  Company  generates  revenue  by  selling  pet  medication
products primarily to retail consumers and minimally to wholesale
customers.   The  Company's policy is to recognize  revenue  from
product  sales  upon shipment, when the rights of  ownership  and
risk of loss have passed to the consumer.  Outbound shipping  and
handling fees are included in sales and are billed upon shipment.
Shipping expenses are included in cost of sales.

   The  majority of the Company's sales are paid by credit  cards
and  the Company usually receives the cash settlement in  two  to
three   banking  days.   Credit  card  sales  minimize   accounts
receivable balances relative to sales.  The Company maintains  an
allowance  for  doubtful  accounts for losses  that  the  Company
estimates  will arise from customers' inability to make  required
payments,  arising  from  either  credit  card  charge-backs   or
insufficient funds checks.  The Company determines its  estimates
of  the  uncollectibility  of accounts  receivable  by  analyzing
historical  bad debts and current economic trends.   At  December
31,  2007  and  2006  the  allowance for  doubtful  accounts  was
approximately $16,000 and $19,000, respectively.

Valuation of inventory

   Inventories  consist of prescription and non-prescription  pet
medications and pet supplies that are available for sale and  are
priced  at  the  lower of cost or market value using  a  weighted
average  cost method.  The Company writes down its inventory  for
estimated  obsolescence.  At December  31,  2007  and  2006,  the
inventory   reserve  was  approximately  $152,000  and  $205,000,
respectively.


                                8




Advertising

    The  Company's  advertising  expenses  consist  primarily  of
television advertising, internet marketing, and direct mail/print
advertising.  Television costs are expensed as the advertisements
are televised.  Internet costs are expensed in the month incurred
and direct mail/print costs are expensed when the related catalog
and postcards are produced, distributed or superseded.

Accounting for income taxes

   The Company accounts for income taxes under the provisions  of
SFAS  No.  109,  Accounting  for Income  Taxes,  which  generally
requires  the recognition of deferred tax assets and  liabilities
for  the  expected future tax benefits or consequences of  events
that  have  been included in the Condensed Consolidated Financial
Statements  or  tax  returns.  Under this  method,  deferred  tax
assets  and  liabilities  are  determined  based  on  differences
between the financial reporting carrying values and the tax bases
of  assets and liabilities, and are measured by applying  enacted
tax  rates  and  laws  for  the  taxable  years  in  which  those
differences are expected to reverse.

Results of Operations

   The following should be read in conjunction with the Company's
Condensed Consolidated Financial Statements and the related notes
thereto  included  elsewhere herein.  The  following  table  sets
forth, as a percentage of sales, certain operating data appearing
in the Company's Condensed Consolidated Statements of Income:



                                         Three Months Ended               Nine Months Ended
                                            December 31,                    December 31,
                                       2007            2006             2007            2006
                                   ------------    ------------    ------------    ------------
                                                                       
Sales                                     100.0 %         100.0 %         100.0 %         100.0 %
Cost of sales                              59.4            59.2            61.1            60.4
                                   ------------    ------------    ------------    ------------

Gross profit                               40.6            40.8            38.9            39.6
                                   ------------    ------------    ------------    ------------

Operating expenses:
  General and administrative               12.1            12.8            10.5            10.2
  Advertising                              11.2            15.2            14.0            16.5
  Depreciation and amortization             0.4             0.4             0.3             0.3
                                   ------------    ------------    ------------    ------------

Total operating expenses                   23.7            28.4            24.8            27.0
                                   ------------    ------------    ------------    ------------

Income from operations                     16.9            12.4            14.1            12.6
                                   ------------    ------------    ------------    ------------

Other income                                1.5             1.3             1.2             1.0
                                   ------------    ------------    ------------    ------------

Income before provision for
  income taxes                             18.4            13.7            15.3            13.6

Provision for income taxes                  6.6             4.9             5.1             5.0
                                   ------------    ------------    ------------    ------------

Net income                                 11.8 %           8.8 %          10.2 %           8.6 %
                                   ============    ============    ============    ============



                                9




Three  Months Ended December 31, 2007 Compared With Three  Months
Ended December 31, 2006, and Nine Months Ended December 31,  2007
Compared With Nine Months Ended December 31, 2006

Sales
-----

   Sales  increased  by approximately $5,997,000,  or  19.1%,  to
approximately  $37,349,000  for the quarter  ended  December  31,
2007,  from  approximately  $31,352,000  for  the  quarter  ended
December 31, 2006.  For the nine months ended December 31,  2007,
sales  increased  by  approximately  $22,075,000,  or  17.5%,  to
approximately  $147,913,000 compared to  sales  of  approximately
$125,838,000 for the nine months ended December 31, 2006.

   The increase in sales for the three months ended December  31,
2007  was primarily due to increased retail reorders and for  the
nine months ended December 31, 2007, the increase in sales can be
attributed primarily to increased retail reorders and new orders,
offset  by  decreased wholesale sales.  The Company has committed
certain   dollars   amounts   specifically   designated   towards
television, direct mail/print and online advertising to stimulate
sales,  create  brand awareness, and acquire new customers.   The
Company  acquired  approximately 127,000 new  customers  for  the
quarter  ended  December  31,  2007,  compared  to  approximately
130,000  new customers for the same period the prior  year.   The
decrease  in  new customer orders for the quarter ended  December
31,  2007  can  be  directly  related  to  a  13%  reduction   in
advertising  expenses during the quarter.  For  the  nine  months
ended  December  31,  2007,  the Company  acquired  approximately
585,000  new  customers,  compared to approximately  549,000  new
customers  for the same period the prior year.  There can  be  no
assurances that this growth trend will continue, due to increased
price  competition from veterinarians and traditional and  online
retailers.   The  following chart illustrates  sales  by  various
sales classifications:



                                         Three Months Ended December 31,
                           2007        %          2006        %       $ Variance    % Variance
                      ------------------------------------------------------------------------
                                                                  

Reorder Sales         $ 28,352,000   75.9%   $ 22,066,000   70.4%    $  6,286,000      28.4%
New Order Sales       $  8,954,000   24.0%   $  9,214,000   29.4%    $   (260,000)     -2.8%
Wholesale Sales       $     43,000    0.1%   $     72,000    0.2%    $    (29,000)    -40.2%
                      ------------  ------   ------------  ------    ------------    -------
Total Net Sales       $ 37,349,000  100.0%   $ 31,352,000  100.0%    $  5,997,000      19.1%
                      ============  ======   ============  ======    ============    =======

Internet Sales        $ 24,416,000   65.4%   $ 19,795,000   63.1%    $  4,621,000      23.3%
Contact Center Sales  $ 12,933,000   34.6%   $ 11,557,000   36.9%    $  1,376,000      11.9%
                      ------------  ------   ------------  ------    ------------    -------

Total Net Sales       $ 37,349,000  100.0%   $ 31,352,000  100.0%    $  5,997,000      19.1%
                      ============  ======   ============  ======    ============    =======





                                          Nine Months Ended December 31,
                           2007        %          2006        %       $ Variance    % Variance
                      ------------------------------------------------------------------------
                                                                  
Reorder Sales         $103,353,000   69.9%    $ 84,075,000   66.8%    $ 19,278,000     22.9%
New Order Sales       $ 44,384,000   30.0%    $ 41,228,000   32.8%    $  3,156,000      7.7%
Wholesale Sales       $    176,000    0.1%    $    535,000    0.4%    $   (359,000)   -66.9%
                      ------------  ------   ------------  ------    ------------    -------

Total Net Sales       $147,913,000  100.0%    $125,838,000  100.0%    $ 22,075,000     17.5%
                      ============  ======   ============  ======    ============    =======

Internet Sales        $ 95,996,000   64.9%    $ 77,388,000   61.5%    $ 18,608,000     24.0%
Contact Center Sales  $ 51,917,000   35.1%    $ 48,450,000   38.5%    $  3,467,000      7.2%
                      ------------  ------   ------------  ------    ------------    -------

Total Net Sales       $147,913,000  100.0%    $125,838,000  100.0%    $ 22,075,000     17.5%
                      ============  ======   ============  ======    ============    =======


  Leading up to the 2004 presidential elections we experienced an
increase in the advertising cost of acquiring a new customer  and
a  decrease in new customer sales, which may have been attributed
to  a shortage of television advertising inventory.  There can be
no  assurances that the 2008 presidential elections will not have
a  similar  impact  on the advertising cost of  acquiring  a  new
customer and new customer sales.


                                10




   The majority of our product sales are affected by the seasons,
due  to  the  seasonality of mainly heartworm and flea  and  tick
medications.   For  the  quarters ended June  30,  September  30,
December  31,  and March 31 of fiscal 2007, the  Company's  sales
were approximately 31%, 27%, 19%, and 23%, respectively.

Cost of sales
-------------

   Cost of sales increased by approximately $3,613,000, or 19.5%,
to  approximately $22,176,000 for the quarter ended December  31,
2007,  from  approximately  $18,563,000  for  the  quarter  ended
December 31, 2006.  For the nine months ended December 31,  2007,
cost  of sales increased by approximately $14,388,000, or  18.9%,
to  approximately  $90,391,000  compared  to  cost  of  sales  of
approximately $76,003,000 for the nine months ended December  31,
2006.   The  increase  in cost of sales for the  three  and  nine
months  ended  December  31,  2007 is  directly  related  to  the
increase in sales.  As a percent of sales, the cost of sales  was
59.4% and 59.2% for the three months ended December 31, 2007  and
2006,  respectively, and for the nine months ended  December  31,
2007  and  2006, cost of sales was 61.1% and 60.4%, respectively.
The  percentage increases can be attributed to increases  in  our
product and freight costs.

Gross profit
------------

   Gross  profit increased by approximately $2,384,000, or 18.6%,
to  approximately $15,173,000 for the quarter ended December  31,
2007,  from  approximately  $12,789,000  for  the  quarter  ended
December 31, 2006.  For the nine months ended December 31,  2007,
gross profit increased by approximately $7,687,000, or 15.4%,  to
approximately   $57,523,000   compared   to   gross   profit   of
approximately $49,836,000 for the nine months ended December  31,
2006.   Gross profit as a percentage of sales was 40.6% and 40.8%
for   the  three  months  ended  December  31,  2007  and   2006,
respectively, and for the nine months ended December 31, 2007 and
2006  gross profit as a percentage of sales was 38.9% and  39.6%,
respectively.   The  percentage decreases can  be  attributed  to
increases in our product and freight costs.

General and administrative expenses
-----------------------------------

   General and administrative expenses increased by approximately
$520,000,  or 12.9%, to approximately $4,543,000 for the  quarter
ended  December 31, 2007, from approximately $4,023,000  for  the
quarter  ended  December 31, 2006.  For  the  nine  months  ended
December  31, 2007, general and administrative expenses increased
by   approximately   $2,710,000,  or  21.2%,   to   approximately
$15,502,000  compared to approximately $12,792,000 for  the  nine
months  ended  December 31, 2006.  The increase  in  general  and
administrative expenses for the three months ended  December  31,
2007  was primarily due to the following: a $363,000 increase  to
payroll  expenses,  with  $157,000 of the  increase  due  to  the
recognition of additional stock based compensation expense during
the  quarter  relating  to the issuance of restricted  stock  and
stock  options,  with $67,000 of the increase due to  withholding
tax expense relating to restricted stock issuances in fiscal 2007
and 2008, and the remaining amount attributed to the addition  of
new  employees  in  the  customer care and  pharmacy  departments
enabling  the Company to sustain its growth; a $210,000  increase
to  bank  service  and  credit card fees which  can  be  directly
attributed to increased sales in the quarter; a $56,000  increase
to  office expenses which can be directly attributed to increased
sales  for the quarter; a $21,000 increase to licenses  and  fees
relating  to a quarterly California mill assessment on  flea  and
tick  products;  and a $19,000 increase in other  expenses  which
includes mainly property expenses.  Offsetting the increase was a
$62,000  decrease  to  insurance expenses relating  to  decreased
insurance  premiums  in  the  quarter;  a  $48,000  decrease   to
professional  fees relating to a decrease in legal  fees  in  the
quarter;  and  a $39,000 decrease to telephone and travel-related
expenses.

   The  increase in general and administrative expenses  for  the
nine  months  ended December 31, 2007 was primarily  due  to  the
following:  a  $1,527,000  increase  to  payroll  expenses,  with
$460,000  of  the increase due to the recognition  of  additional
stock  based compensation expense during the nine months relating
to  the  issuance  of  restricted stock and stock  options,  with
$228,000  of the increase due to withholding tax expense relating
to  restricted stock issuances in fiscal 2007 and 2008,  and  the
remaining  amount attributed to the addition of new employees  in
the  customer care and pharmacy departments enabling the  Company
to  sustain  its growth; a $584,000 increase to bank service  and
credit  card  fees which can be directly attributed to  increased
sales for the nine months; a $386,000 one-time charge due to  the
fact  that  nexus was established in another state,  relating  to
state/county sales tax which was not collected on behalf  of  our
customers in fiscal 2007; a $130,000 increase to office  expenses
which can be directly attributed to increased sales for the  nine
months;  a $122,000 increase to licenses and fees relating  to  a
quarterly  California mill assessment on flea and tick  products;
and  a $63,000 increase in other expenses which includes property
expenses  and  professional  fees, with  a  $58,000  decrease  to


                                11



telephone   expenses,  a  $26,000  decrease   to   travel-related
expenses,   and   an  $18,000  decrease  to  insurance   expenses
offsetting the increase.

Advertising expenses
--------------------

  Advertising  expenses decreased by approximately  $601,000,  or
12.6%, to approximately $4,170,000 for the quarter ended December
31,  2007,  from approximately $4,771,000 for the  quarter  ended
December 31, 2006.  For the nine months ended December 31,  2007,
advertising expenses decreased slightly by approximately $46,000,
or  0.2%,  to  approximately $20,725,000 compared to  advertising
expenses  of approximately $20,771,000 for the nine months  ended
December 31, 2006.  As a percentage of sales, advertising expense
was  11.2% and 15.2% for the three months ended December 31, 2007
and  2006, respectively, and 14.0% and 16.5% for the nine  months
ended December 31, 2007 and 2006, respectively.  The decrease  in
advertising  expense  for  the  quarter  can  be  attributed   to
decreased  television advertising due to a shortage of television
advertising  inventory  as compared to last  year  for  the  same
quarter.   The  advertising  cost of acquiring  a  new  customer,
defined  as  total  advertising costs divided  by  new  customers
acquired,  was  $33  for  the quarter ended  December  31,  2007,
compared to $37 for the quarter ended December 31, 2006, and  for
the nine months ended December 31, 2007, the advertising cost  of
acquiring  a  new customer was $35 compared to $38 for  the  same
period  in  the  prior  year.  The Company currently  anticipates
advertising  as  a percentage of sales to be approximately  14.0%
for  fiscal  2008.   However,  the  advertising  percentage  will
fluctuate  quarter to quarter due to seasonality and  advertising
availability.   For  the  fiscal  year  ended  March  31,   2007,
quarterly  advertising expenses as a percentage of  sales  ranged
between 12% and 18%.

Depreciation and amortization expenses
--------------------------------------

    Depreciation   and   amortization   expenses   increased   by
approximately  $26,000, or 20.1%, to approximately  $155,000  for
the  quarter ended December 31, 2007, from approximately $129,000
for  the  quarter  ended  December 31,  2006.   Depreciation  and
amortization  expenses  increased by  approximately  $39,000,  or
10.0%,  to  approximately  $435,000 for  the  nine  months  ended
December  31,  2007,  from approximately $396,000  for  the  nine
months  ended  December 31, 2006.  This increase to  depreciation
and  amortization expense for the quarter and nine  months  ended
December 31, 2007 can be attributed to new property and equipment
additions in fiscal 2008.

Other income
------------

    Other   income   increased  by  approximately   $141,000   to
approximately $565,000 for the quarter ended December  31,  2007,
from  approximately $424,000 for the quarter ended  December  31,
2006.   For the nine months ended December 31, 2007, other income
increased  by approximately $615,000 to approximately  $1,863,000
compared to other income of approximately $1,248,000 for the nine
months ended December 31, 2006.  The increase to other income for
the  three  and  nine  months ended  December  31,  2007  can  be
attributed  primarily  to  increased  interest  income   due   to
increases in the Company's cash balance, which is swept  into  an
interest-bearing  overnight account and  a  tax-free  short  term
investment  account.   The increase can  also  be  attributed  to
additional  advertising  revenue  generated  from  our   website.
Interest income may decrease in the future if there is a  decline
in interest rates or if the Company utilizes its cash balances on
its   $20,000,000  share  repurchase  plan,  with   approximately
$15,131,000 remaining, or on its operating activities.

Provision for income taxes
--------------------------

   For the quarters ended December 31, 2007 and 2006, the Company
recorded an income tax provision for approximately $2,460,000 and
$1,535,000, respectively, and for the nine months ended  December
31,  2007  and 2006, the Company recorded an income tax provision
of  approximately  $7,605,000 and $6,306,000,  respectively.  The
income tax provision for the nine months ended December 31,  2007
includes a tax benefit of approximately $308,000 which relates to
an  income  tax over-accrual for the fiscal year ended March  31,
2007.  During the first quarter of fiscal 2008, it was determined
that  the Company was no longer a full tax payer in the state  of
Florida,  due  to the fact that it established nexus  in  another
state.   This event triggered a lower effective tax rate  in  the
year ended March 31, 2007 and for future quarters.

   The Company also recognized a $155,000 income tax benefit  due
to  the  disqualifying  disposition of  certain  incentive  stock
option exercises during the nine months ended December 31,  2007.
These events resulted in an effective tax rate of 35.8% for  both
of  the  quarters  ended  December 31,  2007  and  2006,  and  an
effective  tax rate of 33.5% and 36.8% for the nine months  ended
December  31, 2007 and 2006, respectively.  For the remainder  of
fiscal 2008, the Company estimates its effective tax rate  to  be
approximately 1.5% less than it was in fiscal 2007.


                                12




Liquidity and Capital Resources

   The  Company's working capital at December 31, 2007 and  March
31,  2007  was  $64,565,000 and $50,613,000,  respectively.   The
$13,952,000   increase   in   working   capital   was   primarily
attributable to cash flow generated from operations, the exercise
of  stock  options,  and  interest  income  earned  on  temporary
investments,  offset  by stock repurchased for  the  nine  months
ended   December  31,  2007.   Net  cash  provided  by  operating
activities  was  $9,863,000 and $15,111,000 for the  nine  months
ended   December  31,  2007  and  2006,  respectively,  and   the
$5,248,000 decrease can be attributed to an increase in inventory
and  a  decrease in account payables.  Net cash used in investing
activities  was  $6,087,000 and $16,074,000 for the  nine  months
ended  December 31, 2007 and 2006, respectively.  This $9,987,000
decrease  can  be attributed to a lesser amount of  purchases  of
temporary investments in fiscal 2008.  Net cash used in financing
activities was $1,952,000 for the nine months ended December  31,
2007,  and net cash provided by financing activities was $666,000
for  the  nine months ended December 31, 2006.  During  the  nine
months   ended   December   31,  2007,   the   Company   received
approximately  $2,649,000  upon the  exercise  of  275,941  stock
option  shares and the Company repurchased approximately  369,500
shares of its common stock for approximately $4,869,000.

   As  of  both  December 31, 2007 and 2006 the  Company  had  no
outstanding  lease  commitments except  for  the  lease  for  its
executive  offices  and  warehouse.   The  Company  had  financed
certain  equipment acquisitions with capital leases.  The Company
has   approximately  $200,000  planned  for  capital  expenditure
commitments  to further the Company's growth during fiscal  2008,
which will be funded through cash from operations.  The lease for
our  corporate office and distribution facility in Pompano  Beach
expires  in May 2009.  Therefore the Company expects to  allocate
capital  funds for new property leasehold and equipment additions
during  fiscal  2009 to address growth needs for  the  next  five
years.   The  Company's source of working capital  includes  cash
from  operations,  interest income on temporary investments,  and
the exercise of stock options.  The Company presently has no need
for  other  alternative sources of working capital,  and  has  no
commitments or plans to obtain additional capital.

Cautionary Statement Regarding Forward-Looking Information

  Certain  information  in this Quarterly  Report  on  Form  10-Q
includes   forward-looking  statements  within  the  meaning   of
Section 27A of the Securities Act of 1933 and Section 21E of  the
Securities Exchange Act of 1934.  You can identify these forward-
looking   statements   by   the  words   "believes,"   "intends,"
"expects,"   "may,"   "will,"  "should,"   "plans,"   "projects,"
"contemplates,"      "budgets,"     "predicts,"      "estimates,"
"anticipates,"  or  similar expressions.   These  statements  are
based  on our beliefs, as well as assumptions we have used  based
upon  information  currently  available  to  us.   Because  these
statements  reflect our current views concerning  future  events,
these  statements  involve risks, uncertainties and  assumptions.
Actual  future results may differ significantly from the  results
discussed  in the forward-looking statements.  A reader,  whether
investing  in  our common stock or not, should  not  place  undue
reliance  on these forward-looking statements, which  apply  only
as  of  the  date of this quarterly report.   When used  in  this
quarterly   report  on  Form  10-Q,  "PetMed  Express,"   "1-800-
PetMeds,"  "PetMed," "1-888-PetMeds," "PetMed Express.com,"  "the
Company,"   "we," "our," and "us" refers to PetMed Express,  Inc.
and our subsidiaries.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
         RISK.

  Market  risk  generally represents the  risk  that  losses  may
occur  in  the  value of financial instruments  as  a  result  of
movements  in  interest rates, foreign currency  exchange  rates,
and  commodity  prices.  Our financial instruments  include  cash
and    cash    equivalents,   temporary   investments,   accounts
receivable,  and  accounts payable.   The  book  values  of  cash
equivalents,  temporary  investments,  accounts  receivable,  and
accounts  payable  are  considered to be representative  of  fair
value  because  of  the  short  maturity  of  these  instruments.
Interest  rates  affect our return on excess cash  and  temporary
investments.  As of December 31, 2007, we had $2,140,000 in  cash
and  cash  equivalents and $44,860,000 in temporary  investments.
A  majority  of  our  cash and cash equivalents  and  investments
generate interest income based on prevailing interest rates.

  A  significant change in interest rates would impact the amount
of   interest   income  generated  from  our  excess   cash   and
investments.   It  would  also impact the  market  value  of  our
temporary investments.  Our temporary investments are subject  to
market  risk,  primarily  interest rate  and  credit  risk.   Our
temporary investments are managed by a limited number of  outside
professional  managers within investment guidelines  set  by  our
Board  of  Directors.   Such guidelines  include  security  type,
credit  quality, and maturity, and are intended to  limit  market
risk   by  restricting  our  investments  to  high-quality   debt
instruments  with relatively short-term maturities.   We  do  not
utilize financial instruments for long term trading purposes  and
we  do  not hold any derivative financial instruments that  could
expose  us to significant market risk.  At December 31, 2007,  we
had no debt obligations.


                                13




ITEM 4.  CONTROLS AND PROCEDURES.

  The   Company's  management,  including  our  Chief   Executive
Officer  and Chief Financial Officer, has conducted an evaluation
of   the  effectiveness  of  the  design  and  operation  of  our
disclosure  controls and procedures (as defined  in  Rule  13a-15
promulgated  under  the  Securities  Exchange  Act  of  1934,  as
amended)  as of the quarter ended December 31, 2007, the  end  of
the period covered by this report (the "Evaluation Date").  Based
upon  that  evaluation,  our Chief Executive  Officer  and  Chief
Financial Officer have concluded that our disclosure controls and
procedures  are  effective for timely gathering,  analyzing,  and
disclosing of the information we are required to disclose in  our
reports  filed  under the Securities Exchange  Act  of  1934,  as
amended.   There  have been no significant changes  made  in  our
internal  controls  or in other factors that could  significantly
affect,  or  are  reasonably  likely to  materially  affect,  our
internal  controls  over financial reporting  during  the  period
covered by this report.

PART II - OTHER INFORMATION

Item 1.  Legal Proceedings.

  None.

Item 1A. Risk Factors

  Our  operations  and financial results are subject  to  various
risks   and   uncertainties  that  could  adversely  affect   our
business,   financial  condition,  results  of  operations,   and
trading  price of our common stock.  Please refer to  our  annual
report   on  Form  10-K  for  fiscal  year  2007  for  additional
information concerning these and other uncertainties  that  could
negatively impact the Company.

Item 2.  Unregistered Sales of Equity Securities and Use of
         Proceeds.

  The  Company did not make any sales of unregistered  securities
during the first, second, or third quarters of fiscal year 2008.

Issuer Purchases of Equity Securities

  This  table  provides information with respect to purchases  by
the  Company  of shares of common stock during the  three  months
ended December 31, 2007:



                                                                                                 Approximate Dollar
                                                                         Total Number of         Value of Shares
                                                                         Shares Purchased        That May Yet Be
                                Total Number of        Average Price     as Part of Publicly     Purchased Under
Month / Year                    Shares Purchased (1)   Paid Per Share    Announced Program (1)   the Program (1)
------------------------------- --------------------   --------------    ---------------------   ------------------
                                                                                     

October 2007 (October 1, 2007
to October 31, 2007)                       -                   -                        -        $      17,495,794

November 2007 (November 1, 2007
to November 30, 2007)                   167,362        $     13.06                   167,362     $      15,310,726

December 2007 (December 1, 2007
to December 31, 2007)                    14,764        $     12.15                    14,764     $      15,131,359


(1)    In November 2006, the Company announced that the Board  of
  Directors  authorized the repurchase of up  to  $20,000,000  of
  the   Company's  common  stock  from  time  to   time   through
  negotiated   or  open  market  transactions.   The   repurchase
  program  does not have an expiration date and the  program  did
  not  expire, nor did the Company terminate the program,  during
  the period covered by the table.


                                14




Item 3.     Defaults Upon Senior Securities.

  None

Item 4.     Submission of Matters to a Vote of Security Holders.

  None

Item 5.     Other Information.

  None

Item 6.     Exhibits

   The following exhibits are filed as part of this report.

31.1  Certification  of  Principal Executive  Officer  Pursuant  to
      Section 302 of the Sarbanes-Oxley Act of 2002, promulgated under
      the Securities Exchange Act of 1934, as amended (filed herewith
      to Exhibit 31.1 of the Registrant's Report on Form 10-Q for the
      quarter ended December 31, 2007, Commission File No. 000-28827).

31.2  Certification  of  Principal Financial  Officer  Pursuant  to
      Section 302 of the Sarbanes-Oxley Act of 2002, promulgated under
      the Securities Exchange Act of 1934, as amended (filed herewith
      to Exhibit 31.2 of the Registrant's Report on Form 10-Q for the
      quarter ended December 31, 2007, Commission File No. 000-28827).

32.1  Certification  Pursuant to 18 U.S.C. Section  1350,  as
      adopted Pursuant to Section 906 of the Sarbanes-Oxley  Act  of
      2002  (filed  herewith  to Exhibit 32.1  of  the  Registrant's
      Report  on Form 10-Q for the quarter ended December 31,  2007,
      Commission File No. 000-28827).






























                                15




                           SIGNATURES

  Pursuant to the requirements of the Securities Exchange Act  of
1934, the Registrant has duly caused this report to be signed  on
its behalf by the undersigned thereunto duly authorized.

PETMED EXPRESS, INC.
 (The "Registrant")

Date: February 1, 2008

By:  /s/  Menderes Akdag
   ----------------------------------------
              Menderes Akdag

      Chief Executive Officer and President
      (principal executive officer)

By:  /s/  Bruce S. Rosenbloom
   ----------------------------------------
            Bruce S. Rosenbloom

      Chief Financial Officer
      (principal financial and accounting
      officer)

______________________________________________________________________
______________________________________________________________________








                          UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION

                     Washington, D.C. 20549


                     _______________________



                       PETMED EXPRESS, INC


                     _______________________



                            FORM 10-Q


                     FOR THE QUARTER ENDED:

                        DECEMBER 31, 2007



                     _______________________


                            EXHIBITS

                     _______________________









______________________________________________________________________
______________________________________________________________________


                          EXHIBIT INDEX
                          -------------
                                              Number of Pages   Incorporated
Exhibit                                        in Original           By
Number                 Description               Document         Reference

 31.1    Certification of Principal Executive
         Officer Pursuant to Section 302 of
         the Sarbanes-Oxley Act of 2002              1               **


 31.2    Certification of Principal Financial
         Officer Pursuant to Section 302 of
         the Sarbanes-Oxley Act of 2002              1               **


 32.1    Certification Pursuant to 18 U.S.C.
         Section 1350, as adopted Pursuant to
         Section 906 of the Sarbanes-Oxley
         Act of 2002                                 1               **


** Filed herewith