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e-drugstore sees growth
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January 8, 2001: 11:03 a.m. ET
Drugstore.com says 4Q sales rose about 90% over year-ago period
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NEW YORK (CNNfn) - Drugstore.com, an Internet-based pharmacy, said Monday that its fourth-quarter sales are expected to come in much higher than projected, sparking a small rally in the company's depressed stock.
Chairman and CEO Peter Neupert said at a Morgan Stanley investment conference in Scottsdale, Ariz., that net sales for the quarter ended Dec. 31 are expected to total roughly $35 million. That's about 90 percent above sales in the year-earlier period.
Analysts have expected the company to post sales of about $29.3 million, according to results tracker First Call Corp. The money-losing Internet company is projected to post a loss of 55 cents per share for the period, according to the First Call estimate.
 "Despite a tough external market, we were able to nearly double our net sales in the fourth quarter while continuing to increase our gross margins and lower our operating losses," Neupert said. "This further validates that the drugstore category is a unique and very attractive business for online consumers."
Drugstore.com shares were up 50 cents, or 40 percent, to $1.75 in late morning trading, down from a high of $2.81 earlier in the session. However, the stock has plunged 96 percent from its 52-week high of $39.37 amid the dot.com dive on Wall Street.
Neupert's latest remarks follow comments by the company several weeks ago that its holiday sales were strong.
In October, the Bellevue, Wash.-based company laid off about 60 people, or about 10 percent of its work force, in an effort to cut costs. 
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