Walgreens August Comp Sales Rise 4.8%

(RTTNews) - Drugstore chain Walgreen Co. (WAG) reported Thursday that comparable store sales, or sales at stores open for one year or more, grew 4.8 percent in the month of August. Total sales for the month, increased 5.6 percent from last year.

The Deerfield, Illinois-based company reported that total sales for the month, including stores open less than a year, grew to $6.17 billion from $5.84 billion in the same period last year.

Total comparable store sales for the month grew 4.8 percent. However, calendar day shifts negatively impacted total comparable sales by 1.2 percentage points, while generic drug introductions in the last 12 months negatively impacted comparable sales by 0.8 percentage point.

The company's August sales results were negatively impacted by calendar day shifts due to one additional Saturday and one fewer Wednesday compared to August 2012.

Total front-end sales in August grew 3.9 percent, and comparable store front-end sales rose 2.2 percent. However, customer traffic in comparable stores decreased 1.5 percent, while basket size increased 3.7 percent.

At the company's pharmacy counters, sales for the month increased 6.4 percent. Comparable store pharmacy sales also increased 6.4 percent, and increased by a calendar day-shift adjusted 8.2 percent. Pharmacy sales accounted for 64.3 percent of total sales for the month.

Calendar day shifts negatively impacted pharmacy sales in comparable stores by 1.8 percentage points. Calendar day-shift adjusted comparable store pharmacy sales were negatively impacted by 1.3 percentage points due to generic drug introductions in the last 12 months.

Total prescriptions filled at comparable stores increased 5.6 percent in August, but includes a negative impact of 1.8 percentage points due to calendar day shifts. It also increased 7.4 percent on a calendar day-shift adjusted basis.

The company noted that the percentage of Express Scripts (ESRX) prescriptions returning to its pharmacies continued to increase in August.

During the month of August, Walgreens opened 14 stores, including two re-locations.

Walgreens' total sales for the fourth quarter of fiscal 2013, which ended August 31, rose 5.1 percent to $17.95 billion from $17.07 billion in the prior-year period. On average, analysts polled by Thomson Reuters expected the company to report revenues of $17.99 billion for the quarter.

Comparable store sales for the fourth quarter increased 4.5 percent, or 4.9 percent day-fall adjusted. Front-end comparable store sales increased 1.7 percent.

Prescriptions filled at comparable stores increased 6.8 percent in the fourth quarter, or 7.4 percent day-fall adjusted. Comparable pharmacy sales increased 6.2 percent, or 6.8 percent day-fall adjusted.

For fiscal 2013, total sales edged up 0.8 percent to $72.22 billion from $71.63 billion in the prior year. Analysts had a consensus revenue estimate of $72.27 billion.

Calendar 2013 sales to date increased 3.7 percent from the year-ago period to $48.18 billion.

WAG closed Wednesday's regular trading session at $49.49. In Thursday's pre-market, the stock is adding $0.61 or 1.23 percent to $50.10.