The office supplies retailer say it sacrificed some sales to improve online profitability. It also redesigned its business-facing e-commerce site, StaplesAdvantage.com.
The financial story at Drugstore.com for 2010 includes lots of top-line growth but another net loss.
The financial story at Drugstore.com Inc. for 2010 was a familiar one: lots of top-line growth but another net loss.
For the year ended Jan. 2, Drugstore.com, No. 46 in the Internet Retailer Top 500 Guide, reported:
- Sales increased 21.5% to $456.5 million from $375.6 million in 2009.
- Net loss was $3.6 million compared with a net loss of $1.4 million in 2009.
- Sales from over-the-counter merchandise increased year over year 25.5% to $385.2 million from $306.9 million.
- Vision-related revenue increased 3.6% to $71.2 million from $68.7 million.
- Total orders, excluding orders from other businesses, grew to 1.7 million.
- The average over-the-counter order was $62.
“During 2010, we made important strategic progress, achieving our targets for over-the-counter and total beauty growth, and, even more importantly, laying the groundwork to deliver significant growth to both our top and bottom lines,” says CEO Dawn Lepore. “I am confident that the improvements we have made to our site, the extensive testing we conducted on new product offerings and the important investments we made this year position us for a strong 2011.”
For the fourth quarter:
- Sales increased 13.8% to $123.6 million from $108.6 million in Q4 2009.
- Net loss was $663,000 compared with a net loss of $1.6 million in 2009.
- Sales from over-the-counter merchandise increased year over year 15.3% to $106.2 million from $92.1 million.
- Vision-related revenue increased 5.5% to $17.4 million from $16.5 million in Q4 2009.
“Through the sale of our pharmacy assets to BioScrip Pharmacy Services and the acquisition of SkinStore.com, we have refocused the business on our faster growing OTC and vision segments and have a clear plan of how to succeed in these markets,” says Lepore.