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Beauty.com revenue up 28% in Q4

This article was originally published in The Rose Sheet

Executive Summary

Drugstore.com's fourth-quarter sales increased 25% from the comparable quarter last year to $117.4 mil. on the strength of strong Beauty.com and OTC sales, Bellevue, Wash.-based firm says Feb. 9. Revenue from Beauty.com increased 28% in the 14-week quarter, compared with a 13-week quarter last year. The firm reported overall sales of $412.8 mil. and a $1.4 mil. loss for the year, attributed to its agreement to purchase Salu Inc.'s SkinStore.com. Drugstore.com's results "firmly established our company as a clear leader in health and beauty online," CEO Dawn Lepore says

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Upswing in sales on beauty.com in the last two quarters indicates that consumers are migrating back to prestige beauty, says Drugstore.com VP and CFO Tracy Wright. Speaking at the Janney Capital Markets Consumer Conference May 26, Wright noted that during the recession, many consumers of premium items online switched to mass market items sold through sites like drugstore.com, but that trend has reversed in recent quarters. In February, the Bellevue, Wash.-based firm reported that beauty.com's net revenues advanced 28 percent in the fourth quarter (1"The Rose Sheet" Feb. 15, 2010). Drugstore.com's total prestige product business amounts to about $30 million. The company recently announced the launch of two new microsites - AllergySuperstore.com and TheNaturalStore.com - which both sell beauty products targeted to the specific needs of the sites' shoppers. The firm announced the launch of another microsite, DeluxeSalonSupply.com, May 10 (2"The Rose Sheet" May 17, 2010)

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