DRUGSTORE SITE SHOWS GROSS PROFIT
NEW YORK — While still in the red, there were several bits of good news in Drugstore.com’s report for the first quarter. The company noted that orders from repeat customers have increased and that it had a gross profit of 5 percent of total sales.
For the quarter ended April 2, the loss was $49.5 million, compared with a $10.6 million loss in the year-ago period. The loss includes a $38.9 million charge for amortization of intangible assets and for stock-based compensation, compared with a $9.3 million charge last year.
Sales for the period were $22.7 million, compared with $652,000 last year. The online drugstore and information site said its gross profit for the quarter was 5 percent of total sales, or $1.1 million.
Drugstore.com said it added 295,000 new customers, or a 42 percent increase in total customers, over the previous quarter. The firm also noted that orders from repeat customers rose to 50 percent of total orders for the first quarter from 44 percent in the 1999 fourth quarter.
Peter Neupert, president and chief executive officer, said in a statement, “Our strategy is working: Customers are ‘voting with their clicks,’ which is why our repeat business continues to grow rapidly, even as we add so many new customers.”
Drugstore.com, which purchased Beauty.com in February, has an exclusive health and beauty presence at the Amazon.com site. Amazon has an equity stake in Drugstore.com and numerous other sites.