Dallas, Texas 04/02/2014 (FINANCIALSTRENDS) – Walgreen Company (NYSE:WAG) reported its second quarter 2014 operating results earlier last week. The highlight of the earnings call was the increase in sales posted by the firm, in spite of headwinds it faced due to adverse weather conditions which prevailed across major swaths of the country for most part of the reporting quarter and less than expected growth in its generic drug segment.
The earnings report also made it obvious that the firms running feud with its one time partner Express Scripts had coasted the firm a significant dip in prescriptions in the past. Now that the issue has been sorted, the firm is hoping to regain lost business from Express Scripts. In spite of these challenges, the firm reported 5.2 percent increase in its quarter earnings in comparison to 2Q13. This was accomplished on the back of the drug store chain managing to grow its same stores sales up by close to 4.3 percent in the 4Q. Correspondingly, its prescription sales saw an improvement of close to 5.8 percent, while its counter sales went up by 2 percent, all in relation to 2Q13 compares.
The firm also plans to shut down a few underperforming stores, while planning to open additional 55 to 75 new stores during the current fiscal. It reported filling out 214 million prescriptions for the quarter, while its outreach program to gain repeat customers gathered steam. It reported 100 million new enrolments in 2Q under this loyalty program.
Walgreen Company (NYSE:WAG) President and CEO Greg Wasson has been quoted to have explained 2Q performance numbers by explaining that, “ sales were $19.6 billion, up 5.1% from $18.6 billion a year ago, driven in part by 4.3% increase in comp store sales. GAAP operating income for the quarter was $1.3 billion, up 4.9% from $1.2 billion last year. Adjusted operating income for the quarter was $1.3 billion, down 4.3% from $1.4 billion in second-quarter 2013”.
