A new forecast from Forrester Research credits greater online spending by Canadians, lower shipping costs and more selection for the spending increase.
Sales at Drugstore.com Inc. grew 35% in the third quarter over the third quarter of last year to $47.4 million from $35 million.
Sales at Drugstore.com Inc. grew 35% in the third quarter over the third quarter of last year to $47.4 million from $35 million, the company reports. For the first nine months, sales totaled $138.9 million, up 36% from $101.8 million in last year’s first nine months.
Drugstore also announced plans to launch a loyalty program in early November that includes weekly personalized promotional offers, a repeat purchase incentive plan by which customers earn a 5% rebate on all non-pharmacy purchases at Drugstore.com and free shipping on nonprescription orders of $49 or more.
Drugstore also reported that net revenue per order increased by 4%, or $3, to $69. The company acquired 196,000 new customers, bringing the total customer base to 3 million, while orders from repeat customers represented 72% of all orders. Gross margin increased for the thirteenth consecutive quarter to 19.7%, up from 17.1% a year ago, the company reports.
The company also says it reduced its EBITDA loss by 66% to $8.6 million. It reports an operating loss of $7.25 million vs. $34.5 million in last year’s Q3. Operating loss for the first nine months totaled $36.5 million vs. $107.1 million last year.
"I`m thrilled with our third quarter results, and believe that they demonstrate our objective of profitable growth, as well as our continued commitment to our financial target of becoming EBITDA positive during 2003," said Kal Raman, president and CEO.
Drugstore also reported that, just like neighborhood drugstores, it will feature a magazine rack. It entered into a two-year agreement with SynapseConnect Inc. to offer subscriptions to over 600 magazines
Drugstore now says its expects fourth quarter net sales to be $55 million to $57 million and full-year sales to reach $195 million vs. $145 million last year, 35% growth.