Wednesday, Drugstore.com Inc. (DSCM), an online retailer of health and beauty products, reported a profit for the first quarter ended March 29, 2009 from the prior year quarter, helped by OTC sales growth and decreased capital expenditures.
The company recorded first-quarter net income of $1.3 million or $0.01 per share, compared to a loss of $2.7 million or $0.03 per share in the year ago quarter.
Net income include $1.0 million in non-cash stock-based compensation expense and a $1.2 million benefit from the resolution reached on April 27, 2009 regarding sales and use taxes owed by the company for the period January 1, 2000 through February 22, 2008.
Four analyst polled by Thomson Reuters expected the company to earn $0.02 per share for the quarter.
Net sales for the quarter increased to $98.3 million from $92.6 million in the comparable quarter last year.
The company achieved OTC sales growth of over 11% year-over-year, drove beauty sales growth of 14% and increased vision sales by 13%.
For the second quarter the company expects to report net sales in the range of $93.0 million - $97.0 million and net income in the range of $250 thousand - a loss of $1.75 million.
During the quarter, total contribution margin increased by 12% to $19.9 million, and capital expenditures decreased 67% to $1.7 million.
DSCM closed Wednesday's regular trading at $1.29, up 8 cents or 6.61%, on a volume of 1.70 million shares on the Nasdaq. In the after-hours, the shares further gained 11 cents or 8.53%.
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