US: Here''s How Much CVS Will Lose When It Stops Selling Cigarettes

Source from:  Businessinsider.com 02/11/2014

Tobacco is big business in America, which means if you're probably making a decent profit by selling it at your stores.

This is why it's huge news today that CVS Caremark announced it would soon stop selling tobacco products at its more than 7,600 stores.

In its announcement, management warned that it will lose around $2 billion in annual revenues from this decision. That breaks down to around $1.5 billion in tobacco sales and $500 million in sales of other products to tobacco customers. This represents around 17 cents per share. To the bottom line, it represent $0.06 to $0.09 in earnings per share.

In fiscal 2012, CVS had $123 billion in net sales and earned $3.03 per share from continuing operations.

Shares are down by around 1.6% in premarket trading.

Management says the sales ban will go into effect October 1. Enditem