Private investment firm Comvest Partners acquires the financially troubled e-retailer, which filed for Chapter 11 bankruptcy protection in March.
Drugstore.com is expecting its final 2005 web sales to exceed $400 million, a 33% increase from sales of $360 million in 2004. CEO Dawn Lepore also says Drugstore.com will grow several other financial indicators this year, including average order size.
Drugstore.com is expecting its final 2005 web sales to exceed $400 million, a 33% increase from sales of $360 million in 2004.
Speaking at a recent investment banking conference sponsored by Morgan Stanley, CEO Dawn Lepore also notes that Drugstore.com will grow several other key financial indicators in 2005, including annual revenue per active customer, number of orders filled per quarter and average order size.
In the third quarter, average order size increased about $1 to $77 from $76 in the third quarter of 2004, the company says. The number of filled orders also increased to 1.25 million in Q3 2005, compared with 1.1 million in Q4 2004 and 784,000 in Q3 2003. Annual revenue per active customer also increased to $193 compared to $182 in 2004, Lepore says.
For the fourth quarter, Drugstore.com expects sales to total about $103.6 million, up 46.7% from $70.6 million in the fourth quarter of 2004. “We have strong revenue growth in our core segments,” Lepore says. “Customer retention and purchase frequency are the keys to success.”
In previously released financial guidance, Drugstore.com, No. 28 in the Internet Retailer Top 400 Guide to Retail Web Sites, said it expects to post a net loss of $19 million to $24 million for 2005 and a net loss range of $6.4 million to $7.4 million for Q4 2005.