Walgreen's sales fall short

The drugstore chain was hurt by the introduction of new generic drugs, which are less profitable than brand-name drugs.

By TheStreet Staff Sep 3, 2010 12:12PM

By Jeanine Poggi, TheStreet

 

Walgreen's (WAG) August comparable-store sales increased 2.1%, but the figure fell short of forecasts.

 

The drugstore reported a 2.9% jump in pharmacy same-store sales, while front end inched up 0.7%.

 

Walgreen has been hurt by the introduction of new generic drugs and weak customer traffic. Generic drugs tend to have a higher profit margin but hurt sales because they are cheaper.

 

Comparable sales do not include results from the newly acquired Duane Reade chain.

Walgreen also announced on Friday that it will acquire the home-infusion business of Omnicare (OCR) in exchange for its long-term-care pharmacy business. The deal is expected to close before Nov. 15. Financial terms were not disclosed.

 

Rival Rite Aid (RAD) reported a 1% drop in same-store sales, which was in line with expectations.

 

Related Articles

0Comments

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

RECENT QUOTES

WATCHLIST

Symbol
Last
Change
Shares
Quotes delayed at least 15 min
Sponsored by:

MARKET UPDATE

NAMELASTCHANGE% CHANGE
There’s a problem getting this information right now. Please try again later.
NAMELASTCHANGE% CHANGE
There’s a problem getting this information right now. Please try again later.
Market index data delayed by 15 minutes

[BRIEFING.COM] The S&P 500 (-0.5%) remains pressured as every uptick has been met with selling activity. This morning, the health care sector (-0.6%) was an early source of weakness in reaction to concerns about the impact of new rules on tax inversion deals.

Over the past 30 minutes, Bloomberg reported that Pfizer (PFE 30.01, -0.17) has approached Actavis (ACT 242.88, +7.02) about a potential acquisition. Actavis, which traded with a slim loss ahead of the reports, has ... More


Currencies

NAMELASTCHANGE% CHANGE
There’s a problem getting this information right now. Please try again later.
Sponsored by:

VIDEO ON MSN MONEY