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Article: American Drug Stores sales rise, profits decline. (American Drug Stores Inc. ) (Business)
- Article from:
- Chain Drug Review
- Article date:
- March 28, 1994
CopyrightCOPYRIGHT 1994 Racher Press, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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SALT LAKE CITY - Gross margin erosion overpowered a respectable sales gain, causing American Drug Stores Inc. to realize a single-digit decline in fiscal 1993 profits.
Operating profits at the American Stores Co. unit dropped 4.1% to $197 million over the 52 weeks ended January 29, 1994, from $205 million in fiscal 1992. Full-year sales improved 8% to $4.32 billion from $4 billion, as same-store volume at the Osco Sav-on units rose 2%. Operating margins declined 0.6 points over the year to 4.6%.
In the fourth quarter American Drug Stores' contribution to its parent's coffers improved slightly, growing 0.4% to $68 million from $67.7 million a year ...