CVS Caremark earnings call: Dissecting the tobacco exit


Execs with CVS Caremark (CVS -0.3%) cleared up some of the haze over what the impact of the exit of from the tobacco business will be during the firm's earnings call.

CVS lost 110 bps from its front store comp sales mark during Q2 and the development contributed to an overall loss in market share for drugstore traffic.

A 400-500 bp loss in front store sales growth is expected in Q3.

Overall, CVS says it will lose $2B in annual sales from the tobacco decision.

There isn't any specific guidance from the company on how much of the $2B will be made up and when by signing new healthcare services and provider deals.

Earnings call transcript

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