Walgreens' Sales Up, Earnings Down

Walgreens (Deerfield, Ill.) the nation’s largest drugstore chain, said while its sales for the quarter ended Feb. 28 rose by 7 percent from a year earlier to a record $16.5 billion, its net earnings fell by 6.7 percent, to $640 million. “We believe the underlying strength of our community-based retail network and the Walgreens brand, along with our lower cost structure and financial flexibility will enable us to emerge from the current challenging environment well positioned for the future,” president and ceo Gregory Wasson said in a statement.

In a conference call with analysts discussing the results, Wasson said the company plans upgrades for virtually its entire chain of just under 6,700 stores over the next 18 months. As a result, Walgreens’ stores will give more space to such merchandise categories as skin care and cosmetics, he said.