UPDATE: Walgreens Reports May Comps, Sales up 6%
Total front-end sales increased 3.0 percent in May compared with the same month in fiscal 2013, while comparable store front-end sales increased 2.6 percent. Customer traffic in comparable stores decreased 0.5 percent while basket size increased 3.1 percent.
Prescriptions filled at comparable stores increased by 3.5 percent in May and increased 5.6 percent on a calendar day-shift adjusted basis. May 2014 had one additional Saturday and one fewer Wednesday compared with May 2013. These calendar shifts negatively impacted prescriptions filled at comparable stores by 2.1 percentage points.
May pharmacy sales increased by 7.9 percent. Comparable store pharmacy sales increased 5.5 percent and increased by a calendar day-shift adjusted 7.6 percent. Calendar day shifts negatively impacted pharmacy sales in comparable stores by 2.1 percentage points. Calendar day-shift adjusted comparable store pharmacy sales were negatively impacted by 1.3 percentage points due to generic drug introductions in the last 12 months. Pharmacy sales accounted for 64.2 percent of total sales for the month.
Sales in comparable stores increased by 4.4 percent in May. Calendar day shifts negatively impacted total comparable sales by 1.3 percentage points. Generic drug introductions in the last 12 months negatively impacted total comparable sales by 0.8 percentage point.
Total sales for the third quarter of fiscal 2014, which ended May 31, were $19.49 billion, up 6.5 percent from $18.65 billion in last year's quarter. Comparable store sales for the third quarter of fiscal 2014 increased 5.1 percent, while front-end comparable store sales for the quarter increased 2.2 percent. Prescriptions filled at comparable stores increased 4.0 percent in the third quarter and comparable pharmacy sales increased 6.8 percent.
Calendar 2014 year-to-date sales for the first five months were $31.90 billion, an increase of 5.5 percent from $30.24 billion in 2013.
Fiscal 2014 year-to-date sales for the first nine months were $57.42 billion, an increase of 5.8 percent from $54.28 billion in fiscal 2013.
Walgreens opened eight stores during May, including one relocation, acquired one and closed 23. Nearly all of the May store closings were part of the company's previously announced efforts to optimize its asset base by closing a total of 76 drugstores during the second half of fiscal 2014.
On May 31, Walgreens operated 8,683 locations in all 50 states, the District of Columbia, Puerto Rico, Guam and the U.S. Virgin Islands. That includes 8,216 drugstores, 120 more than a year ago, including 70 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.
May Comparable Sales and Prescriptions Filled
Total Comp Sales 4.4 % -1.3 % - 0.8 % - 0.1 %
Comp Front End 2.6 % - - -
Comp Rx Sales 5.5 % -2.1 % - 1.3 % - 0.1 %
Comp Rx Scripts 3.5
-2.1 % - - 0.1 %
* Includes +1.8 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 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.
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