Drugstore.com’s sales grow 4% in 2006, while loss improves by 37%
2006 sales at Drugstore.com Inc. reached $415.8 million, up 4% from $399.4 million in 2005, the company reports. The company reported a net loss of $13 million, a 37% improvement from a loss of $20.9 million in 2005. In the 4th Quarter, revenue reached $108.6 million, up 2% from $106.4 million a year earlier. Q4 net loss was $2.9 million vs. $4.5 million a year earlier.
Over-the-counter sales drove revenue growth, the company reports, with OTC sales up 21% for the year and 19% for the quarter.
In Q4, total orders grew 8% to 1.4 million. Orders for the year grew by 6%.
Mail-order pharmacy net sales at Drugstore, No. 32 in the Internet Retailer Top 500 Guide, were down 28% to $14.5 million reflecting a full quarter without sales through Drugstore’s former partnership with Envision, which was terminated in the second quarter. Local pick-up pharmacy net sales, in conjunction with Rite Aid Corp. stores, were up 9% to $26 million. For the year, local pick-up pharmacy net sales were up 5% to $100.7 million.
Average order value was $75. Sales from repeat customers represented 81% of net sales for the year. Drugstore reports that it brought in 347,000 new customers in the fourth quarter and 8.5 million customers have been served since the company started. The number of active customers grew by 8% to more than 2.2 million. The average annual spend per active customer was $186.
Drugstore.com reports that for 2007, it is targeting net sales of $440 million to $460 million, net loss of $7 million to $11 million.
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