Drugstore.com's Increased Sales Provide Little Relief

Share this article:
Drugstore.com needs a doctor.


The online pharmacy announced a fourth-quarter 2000 loss yesterday and projected more losses in 2001 as it prepared to bid farewell to its chief financial officer David Rostov and 125 other employees.


Despite experiencing fourth-quarter sales of $36.2 million, up $18.5 million from the same period in 1999, Drugstore.com, Bellevue, WA, posted a loss of $43.5 million for the last three months of 2000.


According to company officials, Drugstore.com had $130 million cash at the end of 2000 and will have enough money to survive until it attains break-even cash flow, which it expects to reach in 2004. The company has set its sales targets at $135 million to $145 million for 2001, but still expects to lose $83 million to $88 million for the year.


On Jan. 19, the company reported the upcoming resignation of Rostov, who will be replaced by Bob Barton, vice president and general manager of pharmacy operations, and of the upcoming layoffs.


The job cuts were made across the board and were part of an effort to cut Drugstore.com's annual expenses by $20 million, a company spokeswoman said.
Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Digital Marketing

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

More in Digital Marketing

Hallmark Takes Baby Steps to a New Brand

Hallmark Takes Baby Steps to a New Brand

The company relied on digital to get its growing children's apparel brand off of the ground.

One Third of Americans' Social Media Time Is Spent on Facebook

One Third of Americans' Social Media Time Is ...

Pandora, meanwhile, attracts more user time but far fewer digital advertisng dollars, says a study.

News Corp. Chief Brands Google an 'Unaccountable Bureaucracy'

News Corp. Chief Brands Google an 'Unaccountable Bureaucracy'

Robert Thomson warns the EU that an antitrust deal with Google will lead to a decrease in competitive options for marketers and an increase in piracy.