CVS Caremark Corp. says its decision to stop selling tobacco products will cost about $2 billion a year in revenue.
“Anytime a company puts public health and the long-term good ahead of short-term profit, it’s sort of an eye opener,” Ross Muken, a New York-based analyst at ISI Group, told Bloomberg News reporter Lindsey Rupp.
The $2 billion in foregone revenue equates to about 17 cents a share, Rupp reported. President Barack Obama praised CVS’s decision, which company officials announced yesterday and will take effect in October.
“With what seems like a drug store on every corner, the chain that best ties itself to a person’s life and lifestyle will win the day,” Kyle Stock wrote for Bloomberg BusinessWeek in an article titled, “The Strategy Behind CVS’s No-Smoking Campaign.”