CVS Revises Growth Expectations Based On Current Economic and Business Trends.Business Editors WOONSOCKET, R.I.--(BUSINESS WIRE)--June 27, 2001 CVS (1) (Concurrent Versions System) A version control system for Unix that was initially developed as a series of shell scripts in the mid-1980s. CVS maintains the changes between one source code version and another and stores all the changes in one file. Corporation (NYSE NYSE See: New York Stock Exchange : CVS) today announced that, as a result of current economic and business trends, it now expects earnings per share for the second quarter and full year to be lower than previously anticipated. The Company now expects earnings per share for the second quarter ended June 30, 2001 to be $0.48, versus $0.46 reported in the second quarter last year. For the full year ended December 29, 2001, the Company now expects earnings per share of $1.92-$1.96, representing growth of 7-9% over the comparable 2000 earnings per share of $1.80. "A slowing in our same store sales Same Store Sales A statistic used in retail industry analysis. It compares sales of stores that have been open for a year or more. Notes: This statistic allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of growth and increased gross margin pressure has led us to revise our expectations for the second quarter and full year," said Tom Ryan, Chairman, President and Chief Executive Officer. "The current economic environment has impacted front-store sales, particularly high-margin seasonal and general merchandise categories. While our pharmacy business remains healthy and vibrant in the vast majority of our markets, there are pockets of the country where we are experiencing a slower growth rate in pharmacy. "Clearly, we are disappointed with these developments, and we are taking the necessary actions to reaccelerate our growth," continued Mr. Ryan. "We are focused on driving improvement through operational initiatives and tailored marketing programs. We expect that the trends we are experiencing are near term in nature, and that we are doing the right things to get our results back on a faster growth track. "In spite of these developments, we are as excited as ever about the future of CVS. We operate in a vibrant industry and remain well-positioned as the market leader to take advantage of significant growth opportunities," Mr. Ryan concluded. The Company will report June sales results on July 10, 2001 and second quarter earnings results on July 31, 2001. The Company will hold a conference call today, Wednesday, June 27, 2001, at 8:30 a.m. (EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT ). The call will be simulcast on the Company's web site for all interested parties. You may visit the Company's web site at http://www.CVS.com to hear the call live, or to listen to an archive of the call, as well as to access general information about CVS, including corporate background and press releases. As of May 26, 2001, CVS operated 4,131 retail and specialty pharmacy stores in 31 states and the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). . CVS is America's #1 pharmacy dispensing more retail prescriptions in more stores than any other retailer. With annual revenues exceeding $20 billion, CVS has created innovative approaches to serve the healthcare needs of all of our customers through its more than 4,100 CVS/pharmacy stores; CVS ProCare, its specialty pharmacy business; CVS.com, its online pharmacy; and Pharmacare, its pharmacy benefit management A Pharmacy Benefit Manager (PBM) is a third party administrator of prescription drug programs. They are primarily responsible for processing and paying prescription drug claims. company. General information about CVS is available through the Investor Relations Investor relations The process by which the corporation communicates with its investors. portion of the Company's website, at http://www.CVS.com. This press release contains certain forward looking statements that are subject to risks and uncertainties and that could cause actual results to differ materially. For these statements, the Company claims the protection of the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. for forward-looking statements contained in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. The Company strongly recommends that you become familiar with the specific risks and uncertainties outlined under the caption "Cautionary Statement Concerning Forward-Looking Statements" in its Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended December 30, 2000. |
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