X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

DEERFIELD, IL–Driven by strong pharmacy sales, Walgreens Co. saw its earnings jump by 20% in the third quarter of fiscal 2005, rising to $411 million, or 40 cents per diluted share, from $342.3 million, or 32 cents per diluted share, during the same quarter one year earlier.

“We had another terrific quarter,” said chairman and CEO David Bernauer, noting that improved gross margins and, higher than expected sales for prescription and non-pharmacy items helped fuel the strong numbers. Investment in the chain’s digital photo labs also improved the overall profitability of the company’s photo finishing business, he said.

Sales were at a record $1.8 billion for the third quarter ending May 31, reflecting a 13.1% increase during the period. Comparable store sales showed an 8.7% increase in the quarter, while front-end comparable store sales rose 6.1% during the same period.

Sales and earnings also were strong during the first nine months of 2005, with sales increasing 2.8% to $317 billion during that period. Net earnings for the nine months climbed 20.0% to $1.231 billion or $1.20 per diluted share (compared to last year’s $1.025 billion or 99 cents per diluted share.)

Driving the increases were strong sales of prescriptions, which accounted for 65% of Walgreen’s business. Prescription sales for the third quarter increased 14% with the total number of prescriptions filled in comparable stores, showing a strong 8.8% increase. The company also expanded its pharmacy market share during the period in every state in which it operates and captured about two-thirds of all retail prescription growth in Texas and Florida, the states with the biggest growth in retail prescriptions.

The company said it also saw an increase in its gross profit margins which increased 94 basis points compared to a year ago. Growth in generic drug sales, increases in digital photo finishing and better purchasing terms contributed to the increase, the company said.

Walgreens, which opened 223 new stores during the first nine months of 2005, operates 4,805 drugstores in 45 states and Puerto Rico, The company said it plans 365 new stores in fiscal 2005. In fiscal 2006, the company anticipates a net increase of 390 new stores after closings and relocations, with an overall expansion of 475 new stores.

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?

Dig Deeper

GlobeSt. NET LEASE Spring 2021Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

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 © 2021 ALM Media Properties, LLC. All Rights Reserved.