'Consistent demand' drives Drugstore.com sales

BELLEVUE, Wash. Drugstore.com on Wednesday reported a 20% increase in net sales for the first quarter ended April 4, reaching $118.3 million on strong over-the-counter and Beauty.com sales.

"Consistent demand for everyday health and beauty products, contributions from our partnerships and a strong performance by our overall beauty business helped drive strong growth in our OTC segment," stated Dawn Lepore, drugstore.com CEO and chairman. "With this revenue growth, we were able to leverage our scale, resulting in a 110 basis point improvement in our gross margins. Additionally, SkinStore.com, which we acquired in mid-February, is performing well, contributing $5.5 million in revenues to the quarter.”

OTC net sales grew 29% to $93 million, including Beauty.com growth of 28%, and total beauty growth, including SkinStore.com of 48%. Average net sales per order totaled $67. Average net sales per order for OTC increased nearly 3% year-over-year to $59 while vision and mail-order pharmacy each increased 5% to $121 and $158, respectively. Net sales from repeat customers represented 76% of net sales.