Drugstore.com reports record revenue in Q2, led by over-the-counter growth
Drugstore.com, a web-only retailer of health, beauty, vision and pharmacy products, reported record quarterly net sales of $110.4 million in the second quarter, up nearly 8% from $102.4 million in the same quarter last year. The revenue growth was led by a 22% increase in over-the-counter product sales.
The company reported a net loss of $3.0 million in the quarter, compared with a loss of $2.2 million a year ago. EBITDA (earnings before interest, taxes, depreciation, and amortization) hit a record of positive $2.0 million when adjusted to exclude the impact of stock-based compensation.
“Our record performance was accomplished while investing in a number of key business drivers to accelerate the growth of the business,” says Dawn Lepore, CEO and chairman. “During the second quarter, we continued to ramp up drop ship and introduced over 1,000 new SKUs to our site and we expect to continue to add hundreds more each month. We are improving execution and capacity of our distribution center, adding alternative payment options, developing an enhanced internal search tool and preparing for the launch of our redesigned Beauty.com site.”
Lepore noted that the Beauty.com business grew 52% in Q2 over the prior year “reflecting our positioning of the company beyond the drugstore, as a leading provider of all health, wellness and beauty needs to our customers.”
Total orders grew 12% to 1.5 million. The company added 341,000 new customers in the quarter and the number of active customers—those who have made a purchase in the past 12 months—grew 10% to 2.4 million.
The company’s sales of over-the-counter products grew 22% to $57.5 million; mail-order pharmacy net sales were down 29% to $12.5 million; local pick-up pharmacy net sales grew 5% to $26.6 million and vision net sales were up 11% to $13.8 million.
Drugstore.com is No. 35 in the Internet Retailer Top 500 Guide.
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