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Drugstore.com S&E

This article was originally published in The Rose Sheet

Executive Summary

September relaunch of beauty.com Web site has increased traffic to the site by 40%, fueling the firm's beauty sales growth by 45% in 2007, firm reports during Feb. 6 analyst meeting. "Additionally, we are seeing positive results from the launch of our personalized skin care diagnostic as skin-care sales were up 65%, and from our hair care consultation tool where hair care was the highest growth category, up 78%," President and CEO Dawn G. Lepore says. Performance of the business also was boosted by the addition of prestige brands Stila and Lancaster, which were among 50 prestige brands added to the Web site in 2007, exec notes. In 2008, drugstore.com believes it can grow the beauty business by more than 50% year-over-year. Drugstore.com's net sales for the full year grew 7.2% to 445.7 mil., though firm experienced a loss during the quarter of $9 mil., an improvement over $13 mil. loss last year...

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