Walgreen Co., the largest U.S. drugstore chain, said Tuesday its profit rose 4.5 percent during the fiscal second quarter on a boost in prescription drug sales.
The company said it earned $669 million, or 68 cents per share, up from $640 million, or 65 cents per share, a year earlier. Revenue rose 3.1 percent to $16.98 billion from $16.48 billion.
Analysts polled by Thomson Reuters, on average, expected profit of 71 cents per share on $17.17 billion in revenue.
Walgreen’s prescription revenue increased 3.2 percent as more customers filled 90-day prescriptions. Prescription sales rose just under 1 percent at stores open at least a year.
Sales of other items, like magazines, cosmetics, and food, fell 1.6 percent at stores open at least a year.
Sales open at least year are a key measure of a retailer’s health because they show how existing stores are faring.
The company said a weak flu season hampered sales of cough, cold and flu-related products. Walgreen said the percentage of physician visits by patients with flu symptoms fell to 1.8 percent in late February, from a record 7.7 percent in late October, citing the Centers for Disease Control and Prevention.
Second-quarter results also included ongoing restructuring costs.
Meanwhile, the company is in the midst of buying New York City drugstore chain Duane Reade, as part of a deal announced in February. When completed, the deal will make Walgreen the leading drugstore operator in the city.
At the end of February, Walgreen had 7,680 locations in all 50 states, along with Puerto Rico, Guam, and Washington, DC. Commercial Loan Workout.
Tags: leading drugstore, physician visits, restructuring costs, us drugstore chain, walgreen
