Walgreens July Sales Increase 8.0 Percent
DEERFIELD, Ill. -- August 5, 2013
Walgreens (NYSE: WAG) (Nasdaq: WAG) had July sales of $6.03 billion, an
increase of 8.0 percent from $5.59 billion for the same month in fiscal 2012.
Total front-end sales increased 3.6 percent compared with the same month in
fiscal 2012, while comparable store front-end sales increased 2.3 percent.
Customer traffic in comparable stores decreased 1.2 percent while basket size
increased 3.5 percent.
Prescriptions filled at comparable stores increased by 9.5 percent in July and
increased 7.3 percent on a calendar day-shift adjusted basis. This year’s July
had one additional Wednesday and one fewer Sunday compared with July 2012.
These calendar shifts positively impacted prescriptions filled at comparable
stores by 2.2 percentage points.
The company said the percentage of Express Scripts prescriptions returning to
its pharmacies continued to increase in July.
July pharmacy sales increased by 9.9 percent, while comparable store pharmacy
sales increased 8.8 percent and increased by a calendar day-shift adjusted 6.6
percent. Calendar day shifts positively impacted pharmacy sales in comparable
stores by 2.2 percentage points. Calendar day-shift adjusted comparable store
pharmacy sales were negatively impacted by 2.8 percentage points due to
generic drug introductions in the last 12 months. Pharmacy sales accounted for
64.6 percent of total sales for the month.
Sales in comparable stores increased by 6.3 percent in July. Calendar day
shifts positively impacted total comparable sales by 1.4 percentage points,
while generic drug introductions in the last 12 months negatively impacted
total comparable sales by 1.8 percentage points.
Registrations for Walgreens Balance^® Rewards loyalty program, which launched
in September 2012, totaled 79 million through July.
Calendar 2013 sales to date were $42.02 billion, an increase of 3.4 percent
from $40.64 billion in 2012.
Fiscal 2013 year-to-date sales for the first 11 months were $66.05 billion, up
0.4 percent from $65.79 billion in the comparable period in fiscal 2012.
Walgreens opened nine stores during July, including one relocation, and closed
On July 31, Walgreens operated 8,571 locations in all 50 states, the District
of Columbia, Puerto Rico and Guam. That includes 8,105 drugstores, 184 more
than a year ago, including 67 net stores acquired over the last 12 months. The
company also operates infusion and respiratory services facilities, specialty
pharmacies and mail service facilities. Its Take Care Health Systems
subsidiary manages more than 700 in-store convenient care clinics and worksite
health and wellness centers.
July Comparable Sales and Prescriptions Filled
Calendar Generics Cold, Flu
Actual Shift Impact Impact Impact
Total Comp Sales 6.3 % 1.4 % -1.8 % 0.0 %
Comp Front End 2.3 % - - -
Comp Rx Sales 8.8 % 2.2 % -2.8 % 0.1 %
Comp Rx Scripts 9.5 %* 2.2 % - 0.2 %
* Includes +1.9 percentage points from patients filling more 90-day
Please note: Sales numbers and the adjustments shown in the table are
preliminary, unaudited and subject to revision. Comparable stores are defined
as those drugstore locations open for at least 12 consecutive months without
closure for seven or more consecutive days and without a major remodel or a
natural disaster in the past 12 months. Acquired operating locations and
relocations are not included as comparable stores for the first 12 months
after the acquisition or relocation.
Cautionary Note Regarding Forward-Looking Statements: Statements in this
release that are not historical are forward-looking statements made pursuant
to the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. Words such as "expect," “likely,” "outlook," “forecast,” "would,"
"could," "should," “can,” “will,” "project," "intend," "plan," "goal,”
“target,” “continue," "sustain," “synergy,” "on track," "believe," "seek,"
"estimate," "anticipate," "may," “possible,” "assume," and variations of such
words and similar expressions are intended to identify such forward-looking
statements. These forward-looking statements are not guarantees of future
performance and involve risks, assumptions and uncertainties, including, but
not limited to, those described in Item 1A (Risk Factors) of our most recent
Annual Report on Form 10-K and Quarterly Report on Form 10-Q, each of which is
incorporated herein by reference, and in other documents that we file or
furnish with the Securities and Exchange Commission. Should one or more of
these risks or uncertainties materialize, or should underlying assumptions
prove incorrect, actual results may vary materially from those indicated or
anticipated by such forward-looking statements. Accordingly, you are cautioned
not to place undue reliance on these forward-looking statements, which speak
only as of the date they are made. Except to the extent required by law,
Walgreens does not undertake, and expressly disclaims, any duty or obligation
to update publicly any forward-looking statement after the date of this
report, whether as a result of new information, future events, changes in
assumptions or otherwise.
Michael Polzin, 847-315-2920
Rick Hans, CFA, 847-315-2385
Ashish Kohli, CFA, 847-315-3810
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