Market News

Shoppers’ Earnings Soar

Store-network expansion, increased sales of cosmetics and food, reduced interest expenses and a lower income tax rate have helped increase Shoppers Drug Mart’s net earnings by 19% in the third quarter. The country’s largest drugstore chain earned $108 million, or 50 cents per share, in the period ended October 8. That compares with $90 million (42 cents) in the same period a year earlier. During the same period, sales at Shoppers, which has 985 stores across Canada, grew in all categories and in all regions. Specifically, they increased 8.3% to $2.14 billion, and same-store sales rose by 5.2%. Meanwhile, prescription sales increased 8.6% in the third quarter to $1 billion (6.6% on a same-store basis). Source: Canadian Grocer E-Newsletter, Nov. 11, 2005.