So if you were wondering how CVS did after they stopped selling cigarettes, which was as much as 10% of front store sales in some areas, the answer is…very well, thank you. CVS said net revenues increased 12.9% to a record $37.1 billion for the 4th quarter despite the approximately $500 million lost in tobacco sales during those 3 months. Mainly the jump was due to the Affordable Care Act giving more people health care coverage and an ineffective flu vaccine that resulted in more people getting sick this winter. (Yes, CVS sold that flu vaccine, so I guess they had their cake and ate it too.)
Employees of CVS might ask why hours were cut and expenses were controlled to a questionable level in 4th quarter (no, you can’t order any shopping carts, even if you’re out…) when it would seem obvious they were going to blow past the projections, but that’s a discussion for another day.
Great job, Larry Merlo and team.
CVS Health Kicks Smoking Habit And Still Has Record Sales – Forbes.