Walgreens (NYSE: WAG) (NASDAQ: WAG) had July sales of $5.59 billion, a decrease of 3.7 percent from $5.81 billion for the same month in fiscal 2011. Compared with prior months during this calendar year, July sales comparisons were more significantly impacted by an increase in generic drug introductions.
Total front-end sales decreased 0.8 percent compared with the same month in 2011, while comparable store front-end sales decreased 2.4 percent. Customer traffic in comparable stores decreased 3.8 percent while basket size increased 1.4 percent.
Prescriptions filled at comparable stores decreased 5.2 percent in July. Calendar day shifts in July, which had one additional Monday and Tuesday, and one fewer Friday and Saturday compared with July 2011, positively impacted prescriptions filled in comparable stores by 2.2 percentage points. Higher incidence of flu positively impacted comparable store prescriptions filled by 0.3 percentage point. The negative impact on comparable store prescriptions filled due to no longer being part of the Express Scripts, Inc. pharmacy network was 10.8 percentage points. Prescriptions processed by Express Scripts comprised 12.7 percent of Walgreens prescriptions in July 2011.
July pharmacy sales decreased 5.0 percent, while comparable store pharmacy sales decreased 9.7 percent. Calendar day shifts positively impacted pharmacy sales in comparable stores by 2.2 percentage points. Comparable store pharmacy sales were negatively impacted by 7.1 percentage points due to generic drug introductions in the last 12 months, by 0.2 percentage point due to the product mix of cough, cold and flu drugs and by 10.8 percentage points due to no longer being part of the Express Scripts network. Pharmacy sales accounted for 63.7 percent of total sales for the month.Sales in comparable stores decreased by 7.0 percent. The effect of generic drug introductions in the last 12 months negatively impacted total comparable sales by 4.5 percentage points, while calendar day shifts positively impacted total comparable sales by 1.4 percentage points.
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