CHAMPAIGN, Ill. (AP) - Walgreen said Monday that its second-quarter profits
rose 5 percent as the drugstore chain continued to open new stores at a record
pace.
The results just beat Wall Street's expectations and shares rose 4 percent
in premarket trading.
Deerfield, Ill.-based Walgreen Co.'s earnings increased to $685.9 million,
or 69 cents per share, from $651.9 million, or 65 cents per share, a year ago.
Sales rose 11 percent to $15.39 billion, from $13.93 billion. Same-store
sales gained 4.7 percent. Same-store sales, or sales at stores open at least a
year, is a key indicator of retailer performance since it measures growth at
existing stores.
Thomson Financial says analysts forecast profit of 67 cents per share on
revenue of $15.43 billion.
"While sales softened in this challenging economy, we continue to execute
and deliver." Walgreen Chairman and CEO Jeffrey A. Rein said.
The company improved its focus on meeting budgeted costs, and adjusted store
hours to control expenses, Rein and President Greg Wasson said.
"We're really looking at every store's opening hours, looking at the
competition and what makes sense for the stores," Wasson said.
Walgreen's quarterly results were effected by 121 new store openings. The
company opened a record 290 new stores in the first half of the year, compared
with 223 during the same period a year ago, with a net gain of 240 stores after
relocations and closings.
Walgreens is on track to open 550 new drugstores this year, with a net
increase of more than 475.
Prescription sales, which accounted for just under two-thirds of Walgreen's
sale in the quarter, grew 11 percent, the company said. The number of
prescriptions filled increased 3.6 percent, better than the 2.3 percent rate
across the industry, according to figures from IMS Health, a pharmaceutical
industry data provider.
Walgreen shares rose $1.47 to $38.25 in premarket trading.
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