CVS Earnings Rise on Eckerd Acquisition

Woonsocket, R.I., CVS Corp.’s earnings rose 12.2% in the fourth quarter as sales increased nearly 20%, driven by the company’s July acquisition of part of the Eckerd drug store chain from J.C. Penney Co.

CVS earned $295.6 million, or 70? per share, in the three months ended Jan. 1, up from $263.4 million, or 64? a share, a year earlier.

Sales increased 19.7% to $8.92 billion from $7.45 billion a year earlier. Same-store sales rose 4.4% during the quarter, with pharmacy same-store sales up 5.9% and front-end same-store sales up 1.3%. Pharmacy sales accounted for 69.5% of total company sales for the quarter.

As of Jan. 1, 2005, CVS operated 5,375 stores in 36 states and the District of Columbia.