Drugstore.com posts an 11% gain in 2005 web sales
Drugstore.com turned in a stronger financial performance for 2005 by boosting its sales while trimming its net loss. For 2005, Drugstore.com posted sales of $399.4 million, an increase of 10.94% from sales of $360 million in 2004. At the same time Drugstore.com, No. 28 in the Internet Retailer Top 400 Guide to Retail Web Sites, reduced its net loss from $47.7 million in 2004 to $20.9 million in 2005.
“We made a number of key strategic decisions that benefited our bottom line and that we believe will position us to reach adjusted EBITDA profitability during the second half of 2006," says CEO Dawn Lepore. "We are focused on making each of our orders profitable and to that end, we have adjusted our shipping charges and refined our shipping promotions. We are also eliminating or re-pricing unprofitable SKUs.”
For the fourth quarter, Drugstore.com reported sales of $106.4 million, a 2.7% increase from sales of $103.6 million for Q4 2004. In the fourth quarter, Drugstore.com reduced its net loss to $4.8 million from about $5.4 million in Q4 2004.
"In the fourth quarter, we began to realize the positive impact of these and many other strategic decisions," says Lepore. "During the quarter we added a record 351,000 new customers, saw OTC net sales from repeat customers increase by 35% on a year-over-year comparable basis, and increased our overall average basket size to an all-time high of $80.”
In 2006, the company expects sales to range from $440 million to $460 million, while the projected net loss will range from $15 million to $20 million.
Back...
