Walgreen's Duane Reade Widens Loss
NEW YORK (
) --
Walgreen's
(WAG)
latest purchase,
Duane Reade
, reported a wider fourth-quarter loss on Tuesday.
The New York-based drugstore recorded a loss of $84.8 million from $17.4 million a year earlier. The results included charges of $59.5 million reflecting the probability of a near-term mandatory redemption of its preferred stock.
Sales remained about flat at $465 million, while same-store sales jumped 2.6%.
Walgreen announced last month that it is acquiring Duane Reade for $1.08 billion. The purchase will add 275 Duane Reade stores to Walgreen's portfolio. The deal also includes the assumption of $457 million in Duane Reade's debt.
The deal is expected to close this fiscal year, which ends Aug. 31.
-- Reported by Jeanine Poggi in New York.
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