CVS Caremark Aug. Same Store Sales Rise 4.9% - Update

(RTTNews) - Thursday morning, retail drugstore operator CVS Caremark Corp. (CVS | charts | news | PowerRating) reported a 4.9% increase in same store sales in its CVS/pharmacy division for the month of August.

The Woonsocket, Rhode Island-based company, which was formed following the merger of retail drug store operator CVS Corp. and pharmacy benefit manager Caremark Rx, Inc., said its pharmacy same store sales were up 4% for the period. However, the pharmacy same store sales were negatively impacted by approximately 500 basis points due to recent generic introductions. Front-end same store sales rose 6.8% for the four-week period ended on August 25, 2007. The $26.2 billion worth CVS-Caremark merger was completed in March 2007.

During the four week period, CVS/pharmacy opened 15 new stores, closed 3 stores and relocated 13 others. As of August 25, 2007, the company operated 6,192 CVS/pharmacy stores in 40 states and the District of Columbia.

For the thirty-four week period, same store sales in the CVS/pharmacy division grew 6.1% over the prior year period. Pharmacy same store sales were up 6.1%, while front-end same store sales rose 6.3%.

For the month of July, CVS Caremark's CVS/pharmacy division reported same store sales growth of 5.2%. July pharmacy same store sales increased 4.8%, while front-end same store sales rose 6%.

The company said in early August that its second-quarter net earnings more than doubled to $723.6 million from $337.9 million in the prior-year quarter. On a per share basis, earnings rose 17.5% to $0.47 from $0.40 in the same quarter of last year. Revenues surged 95.3% to $20.7 billion from $10.6 billion a year ago.

During the second quarter, CVS Caremark's same store sales in its CVS/pharmacy division grew 5.7%, with 5.7% growth in pharmacy same store sales and a 5.9% rise in front-end same store sales.

CVS is trading at $37.58 on the NYSE, up $0.22 or 0.59%, on a volume of 1.74 million shares.

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