DEERFIELD, Ill., Jan. 6, 2015 – Walgreen Co. today announced that December sales increased 10.2 percent to $7.92 billion from $7.18 billion for the same month in fiscal 2014.
Total front-end sales increased 3.5 percent compared with the same month in fiscal 2014, while comparable store front-end sales increased 2.6 percent. Customer traffic in comparable stores increased 0.3 percent while basket size increased 2.3 percent.
Prescriptions filled at comparable stores increased by 7.8 percent in December and increased 5.7 percent on a calendar day-shift adjusted basis. This year’s December had one additional Wednesday and one fewer Sunday compared with December 2013. These calendar shifts positively impacted prescriptions filled at comparable stores by 2.1 percentage points. Prescriptions filled at comparable stores also were positively impacted by 1.2 percentage points due to higher incidence of flu compared with the same month a year ago.
December pharmacy sales increased by 15.7 percent, while comparable store pharmacy sales increased 14.2 percent and increased by a calendar day-shift adjusted 12.1 percent. Calendar day shifts positively impacted pharmacy sales in comparable stores by 2.1 percentage points. Calendar day-shift adjusted comparable store pharmacy sales were negatively impacted by 1.5 percentage points due to generic drug introductions in the last 12 months, and were positively impacted by 0.9 percentage point due to higher incidence of flu compared with the same month a year ago. Pharmacy sales accounted for 61.3 percent of total sales for the month.
Flu shots administered at pharmacies and clinics season to date were nearly 7.6 million versus more than 6.7 million last year.
Sales in comparable stores increased by 9.2 percent in December. Calendar day shifts positively impacted total comparable sales by 1.3 percentage points, while the higher incidence of flu positively impacted comparable store sales by 0.5 percentage point. Generic drug introductions in the last 12 months negatively impacted total comparable sales by 1.0 percentage point.
Calendar 2014 sales were $78.41 billion, an increase of 6.4 percent from $73.71 billion in 2013.
Fiscal 2015 year-to-date sales for the first four months were $27.49 billion, up 7.7 percent from $25.52 billion in the comparable period in fiscal 2014.
Walgreens opened four stores during December and closed four.
Walgreens operated 8,330 locations on Dec. 31 in all 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. That includes 8,229 drugstores, 29 more than a year ago, including 10 net stores acquired over the last 12 months. Walgreens also operates infusion and respiratory services facilities, specialty pharmacies and mail service facilities. Its digital business includes Walgreens.com, drugstore.com, Beauty.com, SkinStore.com and VisionDirect.com. Walgreens also manages more than 400 Healthcare Clinic and provider practice locations around the country.
On Dec. 31, Walgreen Co. and Alliance Boots GmbH completed Step 2 of their strategic partnership to form Walgreens Boots Alliance, Inc. (Nasdaq: WBA), finalizing the two step merger launched in 2012 to create the world’s first global pharmacy-led, health and wellbeing enterprise. Walgreen Co. is now a wholly owned subsidiary of Walgreens Boots Alliance, Inc.
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 the Walgreen Co. most recent Annual Report on Form 10-K, as amended, which is incorporated herein by reference, and in other documents that Walgreen Co. or Walgreens Boots Alliance, Inc. files or furnishes 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, we do not undertake, and expressly disclaim, 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.
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Total front-end sales increased 3.5 percent compared with the same month in fiscal 2014, while comparable store front-end sales increased 2.6 percent. Customer traffic in comparable stores increased 0.3 percent while basket size increased 2.3 percent.
Prescriptions filled at comparable stores increased by 7.8 percent in December and increased 5.7 percent on a calendar day-shift adjusted basis. This year’s December had one additional Wednesday and one fewer Sunday compared with December 2013. These calendar shifts positively impacted prescriptions filled at comparable stores by 2.1 percentage points. Prescriptions filled at comparable stores also were positively impacted by 1.2 percentage points due to higher incidence of flu compared with the same month a year ago.
December pharmacy sales increased by 15.7 percent, while comparable store pharmacy sales increased 14.2 percent and increased by a calendar day-shift adjusted 12.1 percent. Calendar day shifts positively impacted pharmacy sales in comparable stores by 2.1 percentage points. Calendar day-shift adjusted comparable store pharmacy sales were negatively impacted by 1.5 percentage points due to generic drug introductions in the last 12 months, and were positively impacted by 0.9 percentage point due to higher incidence of flu compared with the same month a year ago. Pharmacy sales accounted for 61.3 percent of total sales for the month.
Flu shots administered at pharmacies and clinics season to date were nearly 7.6 million versus more than 6.7 million last year.
Sales in comparable stores increased by 9.2 percent in December. Calendar day shifts positively impacted total comparable sales by 1.3 percentage points, while the higher incidence of flu positively impacted comparable store sales by 0.5 percentage point. Generic drug introductions in the last 12 months negatively impacted total comparable sales by 1.0 percentage point.
Calendar 2014 sales were $78.41 billion, an increase of 6.4 percent from $73.71 billion in 2013.
Fiscal 2015 year-to-date sales for the first four months were $27.49 billion, up 7.7 percent from $25.52 billion in the comparable period in fiscal 2014.
Walgreens opened four stores during December and closed four.
Walgreens operated 8,330 locations on Dec. 31 in all 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. That includes 8,229 drugstores, 29 more than a year ago, including 10 net stores acquired over the last 12 months. Walgreens also operates infusion and respiratory services facilities, specialty pharmacies and mail service facilities. Its digital business includes Walgreens.com, drugstore.com, Beauty.com, SkinStore.com and VisionDirect.com. Walgreens also manages more than 400 Healthcare Clinic and provider practice locations around the country.
On Dec. 31, Walgreen Co. and Alliance Boots GmbH completed Step 2 of their strategic partnership to form Walgreens Boots Alliance, Inc. (Nasdaq: WBA), finalizing the two step merger launched in 2012 to create the world’s first global pharmacy-led, health and wellbeing enterprise. Walgreen Co. is now a wholly owned subsidiary of Walgreens Boots Alliance, Inc.
| December Comparable Sales and Prescriptions Filled | ||||||||||
| Actual | Calendar Shift Impact | Cough, Cold, Flu Impact | Flu Shot Impact | Generics Impact | ||||||
| Total Comp Sales | 9.2% | 1.3% | 0.5% | 0.0% | - 1.0% | |||||
| Comp Front End | 2.6% | - | - | - | - | |||||
| Comp Rx Sales | 14.2% | 2.1% | 0.9% | - 0.1% | - 1.5% | |||||
| Comp Rx Scripts | 7.8%* | 2.1% | 1.2% | - 0.1% | - | |||||
| * Includes +1.1 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,” “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 the Walgreen Co. most recent Annual Report on Form 10-K, as amended, which is incorporated herein by reference, and in other documents that Walgreen Co. or Walgreens Boots Alliance, Inc. files or furnishes 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, we do not undertake, and expressly disclaim, 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.
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