Walgreen Green

Walgreen Co. (Deerfield, Ill.) announced record sales and earnings for the first quarter of fiscal 2003.

Net earnings for the period ended Nov. 30, 2002, were up 24.6 percent, and earnings rose 21.2 percent. Sales increased 14.1 percent, and same-store sales were up 8.6 percent.

Prescriptions, which accounted for 63 percent of sales in the quarter, climbed 19.7 percent. Prescription sales in comparable stores rose 14.7 percent.

In December, sales jumped 13.5 percent and same-store sales rose 8 percent.

“We're seeing strong profit momentum from stores opened in the last five to seven years,” said chairman Dan Jorndt. “After getting past their startup years, these stores are powerful contributors. We expect that momentum to drive our performance in the future as more of our young stores go through the same maturing process.”

One-third of the Walgreen store base is less than three years old, including stores in new markets such as Los Angeles, San Diego, Atlanta and the state of North Carolina, where “stores are opening very strong even though we're the new kid on the block,” according to Jorndt. Walgreen opened 92 new stores nationwide in the first quarter.

The company's expansion plans for fiscal 2003 remain on track, with a total of 450 new stores planned (for a net increase after closings and relocations of about 360 stores) and $1 billion in capital investments budgeted.