Shoppers Drug Mart Q3 profit climbs 15%

From the Financial Post:
Third-quarter profit at Shoppers Drug Mart Corp. climbed 15% as the retailer of cosmetics, vitamins and prescription drugs built out its store network and increased its sales in house-branded goods.

Net income at Canada's largest drug store chain rose to $162.5-million, or 75¢ per share, compared with $141.7-million, or 65¢, in the same period a year ago. Analysts polled by Thomson First call were predicting profit of 75¢.

Sales rose 9.8% to $2.79-billion and same-store sales, a retailing bellwether which looks at sales at stores open at least a year, rose 5%, not including tobacco sales. Prescription same-store sales rose 5.2% and merchandise sales were up 4.8%.

This was the 18th consecutive quarter of increased profit at Shoppers, which increased its retail space by 12.6% in the period.

"No real surprises," said analyst Bob Gibson of Octagon Capital, which was reassuring, he said, given recent turmoil in the more discretionary end of the retailing sector. The analyst said he was considering moving his rating on the shares up to a buy from a hold given its recent decline in share price. Prior to yesterday's close, Shoppers' shares had lost 10% of their value this year. ...more