Tech Industry

Short Take: CVS.com said to be profitable in 2002

Drugstore chain CVS said today that its online unit will be profitable in 2002. Larry Zigerelli, chairman of CVS.com, said in an interview that CVS has no plans to spin off the unit or create a separate tracking stock to capitalize on the market's penchant for higher valuations of Internet properties. He said the online business, which resulted largely from CVS's purchase of Soma.com last June, is growing at 10 percent a week--although he declined to quantify specifically what he called a small revenue base compared with CVS's overall sales.

Drugstore chain CVS said today that its online unit will be profitable in 2002. Larry Zigerelli, chairman of CVS.com, said in an interview that CVS has no plans to spin off the unit or create a separate tracking stock to capitalize on the market's penchant for higher valuations of Internet properties. He said the online business, which resulted largely from CVS's purchase of Soma.com last June, is growing at 10 percent a week--although he declined to quantify specifically what he called a small revenue base compared with CVS's overall sales.