Walgreens November Sales Increase 4.1 Percent
DEERFIELD, Ill. -- December 4, 2013
Walgreens (NYSE: WAG) (Nasdaq: WAG) had November sales of $6.07 billion, an
increase of 4.1 percent from $5.83 billion for the same month in fiscal 2013.
Total front-end sales increased 3.2 percent compared with the same month in
fiscal 2013, while comparable store front-end sales increased 1.9 percent.
Customer traffic in comparable stores increased 0.8 percent while basket size
increased 1.1 percent.
The company said that a meaningful increase versus prior quarters in
promotional investment contributed to the improvement in traffic and
comparable store front-end sales for November and throughout the quarter.
Prescriptions filled at comparable stores increased by 1.4 percent in November
and increased 3.7 percent on a calendar day-shift adjusted basis. This year’s
November had one additional Saturday and one fewer Thursday compared with
November 2012. These calendar shifts negatively impacted prescriptions filled
at comparable stores by 2.3 percentage points.
Prescriptions filled at comparable stores were positively impacted by 0.4
percentage point due to more flu shots versus last year but were negatively
impacted by 0.7 percentage point due to the slowest start to the flu season in
November pharmacy sales increased by 4.7 percent, while comparable store
pharmacy sales increased 4.0 percent and increased by a calendar day-shift
adjusted 6.3 percent. Calendar day shifts negatively impacted pharmacy sales
in comparable stores by 2.3 percentage points. Calendar day-shift adjusted
comparable store pharmacy sales were negatively impacted by 1.0 percentage
point due to generic drug introductions in the last 12 months, and were
positively impacted by 0.2 percentage point due to more flu shots versus last
year. The slow start to the flu season negatively impacted pharmacy sales by
0.3 percentage point. Pharmacy sales accounted for 63.5 percent of total sales
for the month.
Flu shots administered at pharmacies and clinics season to date were more than
6.1 million versus nearly 4.6 million last year.
Sales in comparable stores increased by 3.2 percent in November. Calendar day
shifts negatively impacted total comparable sales by 1.5 percentage points,
while generic drug introductions in the last 12 months negatively impacted
total comparable sales by 0.6 percentage point.
Total sales for the first quarter of fiscal 2014, which ended Nov. 30, were
$18.35 billion, up 6.0 percent from $17.32 billion in last year’s quarter.
Comparable store sales for the first quarter of fiscal 2014 increased 5.5
percent, while front-end comparable store sales for the quarter increased 2.2
percent. Prescriptions filled at comparable stores increased 5.6 percent in
the first quarter and comparable pharmacy sales increased 7.5 percent.
Calendar 2013 sales to date were $66.54 billion, an increase of 4.3 percent
from $63.80 billion in 2012.
Walgreens opened 22 stores during November, including nine relocations,
acquired a net total of 55 stores and closed one.
On Nov. 30, Walgreens operated 8,677 locations in all 50 states, the District
of Columbia, Puerto Rico, Guam and the U.S. Virgin Islands. That includes
8,197 drugstores, 140 more than a year ago, including 59 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 750 in-store convenient
care clinics and worksite health and wellness centers.
November Comparable Sales and Prescriptions Filled
Calendar Cough, Flu
Shift Generics Cold, Flu Shot
Actual Impact Impact Impact Impact
Total Comp Sales 3.2% - 1.5% - 0.6% - 0.2% 0.2%
Comp Front End 1.9% - - - -
Comp Rx Sales 4.0% - 2.3% - 1.0% - 0.3% 0.2%
Comp Rx Scripts 1.4%* - 2.3% - - 0.7% 0.4%
* Includes +2.3 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 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 release, whether as a result
of new information, future events, changes in assumptions or otherwise.
Jim Graham, 847-315-2925
Rick Hans, CFA, 847-315-2385
Ashish Kohli, CFA, 847-315-3810
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