Walgreens sees strong Rx sales in March

DEERFIELD, Ill. Sales in Walgreens’ stores rose 6.8% over prior-year levels in March, to $5.46 billion, aided by continuing strong demand for prescription medicines at the chain and favorable calendar comparisons with last year’s March selling period.

Same-store sales at the drug store giant were up 1.5% overall – a respectable performance in the midst of a deep recession – thanks to a strong, 5.7% jump in same-store pharmacy sales. The rise in comp-store pharmacy sales came despite a 2.8% negative impact to top-line sales made by generic drug introductions, which yield lower revenues despite their higher gross margin contribution relative to brand name drug sales.

By contrast, front-end sales in stores open more than a year fell 5.6%, reflecting the deep bite that the economic downturn has taken out of consumer demand in recent months.

Total sales at the prescription counter rose 10.2 percent over March 2008 levels, and accounted for 66.6% of Walgreens’ total sales for the month. Total prescriptions filled at comparable stores increased 4.9 percent in March.

Walgreens opened 69 drug stores in March, including 11 relocations, and as of the end of the month operated 7,233 locations in 49 states, the District of Columbia, Puerto Rico and Guam. That includes 6,736 drug stores, 573 more than a year ago.

Wall Street welcomed the company’s report on March results, driving Walgreens’ stock price ahead more than 4% in early trading Thursday.