DEERFIELD, IL-Walgreen Co. scored big in its first fiscal quarter of 2005 (ended Nov. 30, 2004), posting comp-store growth of 9.4% compared with a year ago. Net earnings for drug store behemoth shot up as well, by 30.5% to $332.7 million, or $0.32 per share, from $254.9 million or $0.25 per share in Q1 2004.

“Earnings this quarter were powered by solid prescription and general merchandise sales, as well as our second straight quarter of significantly higher gross profit margins,” said Dave Bernauer, chairman and CEO of the company, which reported that gross profit margins were up due to better purchasing terms, digital photofinishing and growth in generic drug sales.

The sales surge was led by the company’s pharmacies. “Taking a closer look at our sales, front-end comparable store sales rose 6.1%, while comparable pharmacy sales in the quarter were up 11.3%, and total pharmacy sales climbed 14.4%, said Rick Hans, Walgreens’ director of finance, during the company’s earnings conference call on Monday. All together, prescription sales represent 65% of total sales for the company.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.