Walgreens Sales Up in 3Q
Deerfield, Ill. Walgreens said sales increased 9.6% to a record $15.0 billion for its third quarter ended May 31, and 10.2% to $44.4 billion for the first nine months.
Net earnings for the quarter rose 2.0% to $572 million from $561 million in the same quarter a year ago. Meanwhile, same-store sales were up 3.4% in the quarter, while front-end comparable drug store sales rose 4.6% in the quarter.
Walgreens recorded a LIFO provision of $16.1 million in this year’s quarter vs. a credit of $3.5 million in last year’s third quarter. Last year’s quarter also included a $13.5 million credit from the resolution of a multiyear state tax matter.
Net earnings for the nine months increased 4.2% to $1.71 billion vs. last year’s $1.64 billion. Last year’s nine-month earnings also benefited from the previously mentioned lower LIFO rate and tax benefit.
“In a challenging economy, we continued investing in our future with a relentless focus on cost control,” said Walgreens chairman and CEO Jeffrey A. Rein. “We posted solid results while going up against a nearly 20% earnings increase in the year-ago quarter and a more robust economic environment.”
Walgreen said selling, general and administrative expense dollars in the current quarter grew 10.0% over the year-ago period. Expense control was strong across the company, including a decrease in the rate of store salary and expense growth as well as lower advertising expenses.
Court rules in retailers’ favor in gift card suit
WASHINGTON According to a Reuters report, a court ruled in favor of Best Buy, Circuit City and other retailers over a lawsuit involving gift cards.
The U.S. District Court for the Western District of Texas ruled that the retailers had not infringed on Realsource’s patent for its method of putting value on gift cards. The U.S. Court of Appeals for the Federal Circuit agreed.
Dollar General names new board members
CHESAPEAKE, Va. Dollar Tree’s shareholders have re-elected Macon Brock, Jr., Mary Anne Citrino, Richard Lesser, and Thomas Whiddon, to serve on the board of directors.
In addition, the shareholders elected Arnold Barron, Carl Zeithaml, and Lemuel Lewis, who had been previously appointed by the board, to serve on the board of directors.