Walgreen Posts Higher Quarterly Profit
Drug store chain Walgreen Co. had to deal with a cost-conscious consumer and a weak cold and flu season but still posted a high quarterly profit.
Though, it had to contend with a fall in the same store sales and a discount on the seasonal merchandise.
Walgreen’s profit did rise to $669 million, which came to 68 cents per share, in the second quarter ending on Feb. 28. The previous quarter results a year earlier showed profit of $640 million, or 65 cents per share. This quarter restructuring and other costs helped to include 2 cents per share. Though, Sales rose 3.1 percent to $17 billion, however, Sales at stores open at least a year fell by 0.2 percent.
Meanwhile, general merchandise sales and sales prescription both were under severe pressured due to the mild winter flu season, which made the consumers to hold off buying discretionary items. Margins also improved in this quarter as the company got lesser amount of markdowns as far as seasonal goods were concerned.
