Walgreen (WAG) Can't Stop the Slide
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Walgreen (NYSE: WAG) reported November same-store sales today, announcing revenues totaling $4.77 billion for the month lead to comparable store sales up about 4.4%. Lead by strong sales in consumables and everyday electronics, as well as a 10.6% rise in pharmacy sales, which made up about 65% of total sales in November, Walgreen said its year-to-date sales were around $50 billion, almost 12% better than last years sales of $44.7 billion for the same period.
Despite the seemingly positive same-store sales numbers, Walgreen failed to stop a slide that started after the Company reported weak fourth-quarter earnings on October 1st. Missing the Street EPS estimate by 7 cents ($0.40 actual vs. $0.47 estimate), shares of Walgreen tumbled more than 15% and have continued to decline since.
Down almost 22% year-to-date, shares of Walgreen traded relatively flat prior to the fourth quarter earnings announcement, only moving up about 4% in the nine months from January to September. Walgreen stock has taken a beating over the last two month, sinking by more than 20%.
Shares are down about a percent and a half today, on the same-store sales news, marking a new 52-week low at $35.82. Walgreen said that November sales were hurt by issues in seasonal categories, including a mild early flu season.
On a positive note, Jeffrey A. Rein, Walgreen's Chairman and CEO, said "Although the weak economic environment may have impacted early holiday sales, we believe the economy will benefit drugstores late in the Christmas season as customers take advantage of our wide selection of products and our convenient locations. That's typical of our past experience."
Despite the seemingly positive same-store sales numbers, Walgreen failed to stop a slide that started after the Company reported weak fourth-quarter earnings on October 1st. Missing the Street EPS estimate by 7 cents ($0.40 actual vs. $0.47 estimate), shares of Walgreen tumbled more than 15% and have continued to decline since.
Down almost 22% year-to-date, shares of Walgreen traded relatively flat prior to the fourth quarter earnings announcement, only moving up about 4% in the nine months from January to September. Walgreen stock has taken a beating over the last two month, sinking by more than 20%.
Shares are down about a percent and a half today, on the same-store sales news, marking a new 52-week low at $35.82. Walgreen said that November sales were hurt by issues in seasonal categories, including a mild early flu season.
On a positive note, Jeffrey A. Rein, Walgreen's Chairman and CEO, said "Although the weak economic environment may have impacted early holiday sales, we believe the economy will benefit drugstores late in the Christmas season as customers take advantage of our wide selection of products and our convenient locations. That's typical of our past experience."
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