CVS Corp. said first-quarter profit climbed
12 percent because it sold more drugs at its pharmacies and curbed
costs.
Net income for the
No. 2 U.S. drugstore chain increased to $196.3 million, or 48 cents a share,
from $175.7 million, or 43 cents, a year earlier, the company said
in a statement. Sales rose 5.7 percent to $6.31 billion.
CVS added 12 stores during the quarter and relocated 24
others. The chain sold more generic versions of drugs, which carry
higher profits than name brands, and offered fewer discounts to
compete with larger rival Walgreen Co. and discount retailers
including Wal-Mart Stores Inc. that have pharmacies.
Profit matched the average estimate of analysts surveyed by
Thomson Financial.
Shares of Woonsocket-based CVS rose 18 cents to
$25.47 yesterday. They fell 22 percent in the past year.
Sales at stores open at least a year rose 3.9 percent from a
year earlier, led by a 7.1 percent gain in pharmacy same-store
sales. Same-store sales of non-prescription goods such as candy
and cosmetics fell 2.7 percent. Same-store sales exclude new and
closed locations.
The retailer, which trails Walgreen in annual sales, has
4,099 U.S. stores.
Bloomberg News
