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 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.
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.
[BRIEFING.COM] The stock market finished an upbeat week on a mixed note. The S&P 500 added just over a point, holding its weekly gain at 1.0% while the Nasdaq lost 0.4%.
The major averages began the day on an upbeat note, but relinquished their opening gains during the first 90 minutes of action. The early sentiment was boosted by a better-than-expected nonfarm payrolls report for February (175K versus Briefing.com consensus 163K), but a closer look into the report suggested that ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|
VIDEO ON MSN MONEY
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'