4Q, Full-Year Sales Up at Drugstore.com

Feb 02, 2007 1:47 AM  By

Fourth-quarter and full-year net sales rose for Bellevue, WA-based Drugstore.com (Nasdaq: DSCM), registering 2.1% and 4.1% increases, respectively, for the period ended Dec. 31, 2006. For the fourth quarter, the company posted sales of $108.6 million, compared to $106.3 million the previous year. For the full year, sales reached $415.7 million, compared to $399.4 million the previous year.

Revenue increases, however, weren’t enough to boost net income, as the company recorded net losses of $2.9 million and $13.0 million for the fourth quarter and full year, respectively.

“Our core OTC (over-the-counter) segment continues to be the key driver of our business and, in the fourth quarter, orders grew by 19% year-over-year and 21% for the year,” CEO Dawn Lepore said in a release. “Importantly, we had a strong eight-week holiday season, with order growth during this period increasing by 25%. Additionally, fourth quarter contribution margin dollars increased by nearly 10% while fixed costs declined by 1%.”

In other company news, vice president/chief financial officer Robert A. Barton, submitted his resignation and is expected to leave Drugstore.com in mid-2007, officials said. Barton will serve in an advisory role during a transition period after his successor is appointed.