China Nepstar's Q1 profit plummets 92%

Shenzen, China China Nepstar Chain Drugstore Ltd., the largest drugstore operator in China, said Tuesday that its profit dropped 92% in the first quarter, citing expansion costs as the reason.

The retailer opened 104 stores in the first quarter, in addition to the more than 150 stores it opened in the fourth quarter, giving China Nepstar a total of 2,559 locations as of March 31. It has closed 38 locations over the last six months.

Profit for the quarter dropped to 2.6 million yuan ($375,000) from 30.4 million yuan. Revenue grew 12% to 567.2 million yuan ($83 million) from 506 million yuan.

Same-store sales grew 6.9%.