During the first quarter of 2018, we adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). As a result of the new accounting standard, income relating to our credit card program and gift card breakage that previously offset selling, general and administrative (“SG&A”) expenses has been recorded in other revenue in the Condensed Consolidated Statements of Income for all periods presented. The increase in other revenue for the first quarter of 2018 is the result of higher penetration from our growing credit card program. Gross profit for the first quarter of 2018 was $96.1 million or 29.4 percent of sales compared to $95.6 million or 28.3 percent of sales in 2017. Click Read More below for additional information.
CVS Health Corp. reported third-quarter revenue and earnings that beat expectations, boosted by its acquisition of insurance giant Aetna.
The drug store and health services company disclosed in a regulatory filing it will close 22 “underperforming” drug stores early next year. The shutterings are in addition to the 46 stores CVS closed earlier this year.
“We believe these decisions will generate enhanced longer-term performance,” CFO Eva Boratto told analysts Wednesday on CVS’ quarterly call. “Our real estate footprint remained very productive, and we will look for opportunities to further improve the performance in our portfolio.”
CVS’ net income rose 10% to $1.53 billion, or $1.17 a share, in the quarter ended Sept. 30, from $1.39 billion, or $1.36 a share, in the year-ago period. Adjusted earnings per share $1.84, easily topping analysts’ estimates of $1.77.
Total revenue grew to $64.81 billion from $47.49 billion, beating estimates $62.99 billion. Revenues in the retail segment increased 2.9%, driven by increased prescription volume and brand name drug price inflation. Same-store sales rose 3.6%
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