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 © 2013 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. 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 SIX Financial Information.
[BRIEFING.COM] Stocks entered the weekend on a mixed note as the S&P 500 shed 0.1% while the Dow ended with a gain of 0.1%.
The major averages began the day on a lower note as nine of ten sectors saw losses of more than 0.5%.
The consumer staples sector was the lone exception as the group spent the entire day in positive territory thanks to the relative strength of Dow component Procter & Gamble (PG 81.89, +3.19). The second-largest staple stock advanced ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|
LATEST MARKET DISPATCHES
- No more Dispatches; here's where to find market news
The Market Dispatches column has been discontinued. Here's where to find the latest stock and business news on MSN Money, and the latest from market writer Charley Blaine.
- Dow falls 59 as late-day gloom kills a rally
- Stocks held back by fiscal-cliff worries
- Stocks suffer worst weekly loss in 5 months
- Dow off 121 as post-election swoon continues
- Dow slumps 313 after Obama's re-election
- Dow jumps 133 as Americans head to the polls
Try as the bears might, they couldn't break U.S. stocks. But investors still face frothy prices and considerable headwinds.