Walgreens September sales increases 5.3% to $5.64 billion

Walgreens (NYSE:WAG)(NASDAQ:WAG) had September sales of $5.64 billion, an increase of 5.3 percent from $5.36 billion for the same month in fiscal 2010. Duane Reade stores, acquired in April 2010, contributed 2.8 percentage points to the total sales increase for the month.

“We're pleased with the number of flu shots we've already administered”

Sales in comparable stores (those open at least a year) increased 0.4 percent. The effect of calendar day shifts negatively impacted total comparable sales by 0.1 percentage point. Duane Reade stores are not included in any comparable store results.

September pharmacy sales increased 4.1 percent, while comparable pharmacy sales increased 0.3 percent. The effect of calendar day shifts negatively impacted comparable pharmacy sales by 0.1 percentage point. Comparable pharmacy sales were negatively impacted by 2.8 percentage points due to generic drug introductions in the last 12 months and by 0.8 percentage point due to lower incidence of cough, cold and flu. Comparable pharmacy sales also were negatively impacted by 0.7 percentage point due to fewer flu shots. Pharmacy sales accounted for 66.9 percent of total sales for the month.

Prescriptions filled at comparable stores increased 0.8 percent in September, including 1.4 percentage points due to more patients filling 90-day prescriptions. Calendar day shifts negatively impacted prescriptions filled in comparable stores by 0.1 percentage point, while the lower incidence of flu negatively impacted comparable prescriptions filled by 1.5 percentage points. Prescriptions filled at comparable stores also were negatively impacted by 1.6 percentage points due to fewer flu shots.

Flu shots administered at pharmacies and clinics during September totaled approximately 2 million with nearly 2.25 million flu shots having been administered season-to-date.

"We're pleased with the number of flu shots we've already administered," said Kermit Crawford, Walgreens president of pharmacy services. "Although we faced difficult comparisons for the month as a result of last year's H1N1 pandemic and flu vaccine demand, we already have administered nearly 40 percent of the approximately 5 million shots we provided in the first quarter of last fiscal year when we ran out of vaccine in the latter part of the quarter. This year, we are well-stocked with flu shots and are still nearly five months away from the typical peak in flu incidences in the month of February."

Total front-end sales increased 8.5 percent in September, including 5.1 percentage points from Duane Reade. Comparable store front-end sales increased 0.7 percent. Customer traffic in comparable stores decreased 1.5 percent, while basket size increased 2.2 percent.

Calendar year-to-date sales were $50.36 billion, an increase of 5.7 percent from $47.63 billion in 2009.

Walgreens fiscal year began Sept. 1, so fiscal year-to-date sales are the same as the month's sales.

Walgreens opened 24 stores during September, including four relocations, acquired three and closed four.