Walgreens October Sales Decrease 2.1 Percent
Balance™ Rewards registrations reach more than 28 million through October
DEERFIELD, Ill.--(BUSINESS WIRE)-- Walgreens (NYSE: WAG ) (Nasdaq: WAG ) had October sales of $6.00 billion, a decrease of 2.1 percent from $6.13 billion for the same month in fiscal 2012. Results include the impact of Hurricane Sandy through Oct. 31.
Total front-end sales decreased 1.5 percent compared with the same month in fiscal 2012, while comparable store front-end sales decreased 2.9 percent through Oct. 31. Customer traffic in comparable stores decreased 5.2 percent while basket size increased 2.3 percent.
Chief Financial Officer and President, International Wade Miquelon said, “Our strategic decision not to pursue unprofitable promotions resulted in solid margins for the month as we continue to focus on gross profit dollar growth.”
Prescriptions filled at comparable stores decreased by 1.8 percent in October and by a day-fall adjusted (DFA) 5.4 percent. This year’s October had one additional Tuesday and Wednesday and one fewer Saturday and Sunday compared with October 2011, positively impacting prescriptions filled in comparable stores by 3.6 percentage points. DFA prescriptions filled at comparable stores also were positively impacted by 0.2 percentage point due to the higher incidence of flu in this year’s October. These results also include the storm impact.
At the peak of the storm, approximately 750 of 1,400 stores in the impacted area were closed. Nearly all of those locations have since reopened.
For the period from Oct. 1 through Oct. 25, which excludes the impact from Hurricane Sandy, comparable store front-end sales decreased 2.4 percent, while prescriptions filled at comparable stores decreased 4.6 percent, adjusted for calendar shifts.
For the month through Oct. 31, pharmacy sales decreased 2.6 percent, while comparable store pharmacy sales decreased 7.5 percent. Calendar day shifts positively impacted pharmacy sales in comparable stores by 3.6 percentage points. DFA comparable store pharmacy sales were negatively impacted by 9.0 percentage points due to generic drug introductions in the last 12 months. Pharmacy sales accounted for 64.8 percent of total sales for the month.
Flu shots administered at pharmacies and clinics season-to-date were nearly 3.6 million versus approximately 4 million last year.
Sales in comparable stores decreased by 5.9 percent for the month through Oct. 31. Calendar day shifts positively impacted total comparable sales by 2.3 percentage points, while generic drug introductions in the last 12 months negatively impacted total comparable sales by 5.8 percentage points.
Registrations for Walgreens Balance™ Rewards loyalty program, which launched in September, totaled more than 28 million through Oct. 31.
Calendar year-to-date sales were $57.96 billion, a decrease of 3.6 percent from $60.11 billion in 2011.
Fiscal 2013 year-to-date sales for the two months were $11.48 billion, down 4.9 percent from $12.07 billion in fiscal 2012.
Walgreens opened 21 stores during October, including five relocations.
At Oct. 31, Walgreens operated 8,489 locations in all 50 states, the District of Columbia, Puerto Rico and Guam. That includes 8,030 drugstores, 244 more than a year ago, including 108 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.
October Comparable Sales and Prescriptions Filled
Calendar Shift Impact
Cough, Cold, Flu Impact
Flu Shot Impact
|Total Comp Sales||-5.9%||2.3%||-5.8%||-0.1%||0.0%|
|Comp Front End||-2.9%||0.0%||-||-|
|Comp Rx Sales||-7.5%||3.6%||-9.0%||-0.2%||-0.1%|
|Comp Rx Scripts||-1.8%*||3.6%||-||0.2%||0.0%|
Includes +2.2 percentage points from patients filling more 90-day prescriptions
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,” “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 report, whether as a result of new information, future events, changes in assumptions or otherwise.
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Michael Polzin, 847-315-2920
Rick Hans, CFA, 847-315-2385
Snehal Shah, 847-315-2361
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