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CVS posts record 4Q
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February 8, 2000: 9:05 a.m. ET
Aggressive growth plan sets 400-450 new stores, targeting Florida market
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NEW YORK (CNNfn) - CVS Corp. posted record fourth-quarter sales and earnings Tuesday and announced an aggressive expansion program that will add up to 450 new stores this year.
The Woonsocket, R.I.-based company, the nation's largest retail pharmacy, said it earned $186.3 million, or 46 cents per diluted share, during the quarter ended Jan. 1.
That surpassed the $145.8 million, or 36 cents per share, it earned in the year-earlier period excluding the impact of $1.9 million in merger, restructuring and other non-recurring charges. It also exceeded the 44 cents per share analysts had expected.
Net sales for the quarter jumped 23.7 percent to $5.2 billion, including a 12.6 percent increase in same-store sales.
CVS said it opened a record 445 new or relocated stores during fiscal 1999, ahead of its previously-announced goal, and plans to open an additional 400 to 450 new stores during 2000, including launching an aggressive expansion program in Florida, home to more of the top 100 drugstore markets than almost any other state.
CVS operates 4,098 stores in 26 states and the District of Columbia.
Investors balked at the aggressive expansion plans announced last quarter, shaving more than 12 percent from CVS' stock price. CVS (CVS: Research, Estimates) shares closed down 1/16 at 36-7/16 Monday in advance of its earnings report.
For the full year, CVS earned $635.1 million, or $1.55 per share, up from $510.1 million, or $1.26 per share, the previous year. Last year's totals excluded merger, restructuring and other non-recurring charges of $178.6 million.
Revenue for the year increased 18.5 percent to $18.1 billion.
In a separate announcement, CVS said its comparable-store sales increased 9.7 percent during January while pharmacy same-store sales rose 15.1 percent. Company officials said overall sales were adversely affected by bad weather conditions across CVS' operating area and the timing of the flu season. 
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CVS Corp.
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