Your Pet Or Car? When Times Got Rough, Consumers Made A Tough Choice This Summer

Freshpet Inc’s FRPT second-quarter earnings report offered great insight into the current macroeconomic trends currently affecting the pockets of Americans.

The seller of refrigerated fresh pet food missed on both the top and bottom lines, reporting losses of $20.6 million in the second quarter and a loss of $0.45 per share. The company posted revenues of $146 million in the period.
 

High Gas Prices Affected Freshpet Sales: In Freshpet’s Aug. 8 earnings call, the company noted, “We did see both a downturn in retail foot traffic and household penetration gains in June when gas prices hit a national average of $5 — that did have a modest impact on the net sales in Q2 as consumers seem to consolidate or defer trips in June.”
 

Although products from Freshpet can be bought online, the company sells the majority of its goods through foot traffic at grocery stores.
 

Read more: Biden Inflation Bill Isn't All Alternative Energy: $20B Goes To Farms. Here's Why
 

Why It Matters: As consumers grappled with the high cost of gas in June, they chose to travel less to save money.
 

The company noted its July shipments are strong and it saw a bump in household penetration gains.
 

On June 14, gas prices nationwide reached a high of over $5 per gallon. Since then, prices have declined for 61 straight days with the national average hitting $3.95 on Monday.

Related: It's OK To Fill Up The Tank Now: Gas Prices Fall For 56 Days In A Row, Contribute To Overall CPI Data
 

Freshpet's remarks, according to RBC Capital Markets, serve as a reminder that the Federal Reserve can still deliver a soft landing in light of last week's data on the CPI and consumer sentiment that moderated and supported the Fed's decision to change course, as well as the mild recession narratives that have recently been boosting stock prices.

Also read: Does Inflation Only Affect The Poor? How New And Used Car Data Can Tell The Story
 

Photo: Bachkova Natalia via Shutterstock