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.
[BRIEFING.COM] Equity indices closed out the month of August on a modestly higher note. The Russell 2000 (+0.6%) and Nasdaq Composite (+0.5%) finished ahead of the S&P 500 (+0.3%), which extended its August gain to 3.8%. Blue chips lagged with the Dow Jones Industrial Average (+0.1%) spending the bulk of the session in the red.
The final week of August represented one of the quietest stretches for the stock market so far this year. The first four sessions of the week produced the ... 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'