Walgreen Boasts Profit on Market Share
Walgreen Co. reported a 10 percent rise in quarterly earnings. Competitive pricing and better store locations helped the largest U.S. drugstore chain lure customers from rivals and gain market share, reports Reuters.
Net income for the second quarter, ended on February 28, rose to $326.6 million or 32 cents a share, from $296.9 million or 29 cents a share, a year earlier. Year-earlier results included a gain of one cent per share for a partial payment of the company’s share of a brand-name prescription drug antitrust litigation settlement.
Walgreen benefited from strong customer traffic as a result of competitive pricing on key items like vitamins, skin-care products and cosmetics, says Merrill Lynch analyst Mark Husson. However, Walgreen shares are likely to linger around their current levels as they are seen as very pricey, he adds.
Moderator Comment: What are the biggest obstacles
to Walgreen’s continued growth?
Look for a Walgreen’s coming to a busy intersection corner
location near you very soon (if it isn’t there already). Walgreen’s own studies
show that most of its pharmacy customers come from within a couple of miles
away from the store. The chain plans to be operating 6,000 stores by 2010 from
around 3,500 today. [George
Anderson – Moderator]