Walgreens October Sales Increase 6.8 Percent

Main Category: Pharmacy / Pharmacist
Article Date: 05 Nov 2008 - 8:00 PDT

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Walgreens (NYSE:WAG)(NASDAQ:WAG) had October sales of $5,160,900,000 an increase of 6.8 percent from $4,833,495,000 for the same month in 2007. Sales in comparable stores (those open at least a year) rose 2.0 percent, while comparable store front-end sales increased 0.4 percent.

October pharmacy sales increased 6.5 percent, while comparable pharmacy sales increased 2.8 percent. Comparable pharmacy sales were negatively impacted by 2.2 percentage points due to generic drug introductions in the last 12 months.

Total prescriptions filled at comparable stores decreased 0.4 percent in October, negatively impacted by 0.6 percentage points due to the switch of Zyrtec from prescription to over-the-counter status. Pharmacy sales accounted for 66.5 percent of total sales for the month.

Calendar shifts negatively impacted total comparable store sales by 0.5 percentage points, comparable pharmacy sales by 0.7 percentage points and prescriptions filled in comparable stores by 0.7 percentage points. The preliminary sales results announced last week for the first 28 days of the month were not impacted by any calendar day shifts.

October front-end sales were helped in part by strong sales of consumables and key beauty items. Also, Zyrtec's switch to over-the-counter status benefited front-end sales by 0.5 percentage points.

Calendar year-to-date sales were $49,503,551,000 an increase of 9.6 percent from $45,167,428 in 2007.

Fiscal 2009 year-to-date sales for the first two months were $10,009,978,000 up 8.3 percent from $9,244,482,000. Comparable store sales for the fiscal year to date increased 3.2 percent.

Walgreens opened 71 stores during October, including seven relocations, and acquired one store.

Please note that next month, calendar day shifts in November will have a significant negative impact on comparable prescriptions filled. Compared to the 2007 calendar, November 2008 loses a Thursday and Friday while gaining a Saturday and Sunday.

At Oct. 31, Walgreens operated 7,035 locations in 49 states, the District of Columbia, Puerto Rico and Guam. That includes 6,544 drugstores, 600 more than a year ago. The company also operates home care facilities and specialty, institutional and mail service pharmacies. Its Take Care Health Systems subsidiary manages 637 convenient care clinics and worksite health centers. Franchisees of Option Care, Inc., a wholly-owned subsidiary of Walgreens, are not included in Walgreens location or store count.

Please note: Monthly sales numbers are preliminary and unaudited. Comparable stores are defined as those drugstore locations open for at least 12 consecutive months without closure for seven or more consecutive days and without a major remodel or a natural disaster in the past 12 months. Relocated and acquired stores are not included as comparable stores for the first 12 months after the relocation or acquisition.

Walgreens

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