- China Nepstar Chain Drugstore (NYSE:NYSE:NPD) reports comparable-store sales rose 16.7% primarily due to in-store promotional initiatives and marketing of pharmaceutical products.
- Private label products sales represents ~14.7% of the revenue & 22% of the gross profit.
- Revenue contribution by products: Prescription drugs 23.1%; OTC 41.4%; Nutritional supplements 12.1%; Herbal products 4.7%; Convenience and other products 18.7%.
- Gross margin rate fell 280 bps to 39.9% mainly due to proactive promotional activities on pharmaceutical products.
- Inventory grew 3.8% Y/Y to $93.13M.
- Store count -100 Y/Y to 1,948.
- Q2 results