- 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