Walgreens March Sales Increase 10.6 Percent

Business Wire, April 2, 2008

DEERFIELD, Ill. -- Walgreens (NYSE:WAG)(NASDAQ:WAG) had March sales of $5,111,000,000, an increase of 10.6 percent from $4,620,704,000 for the same month in 2007. Sales in comparable stores (those open at least a year) rose 4.4 percent, while comparable store front-end sales increased 11.3 percent. March sales benefited from an early Easter compared with Easter in April last year. The company recorded strong Easter seasonal sales, and front-end sales exceeded expectations for the month despite the slowing economy.

March pharmacy sales increased 6.9 percent, while comparable pharmacy sales increased 0.8 percent. Comparable pharmacy sales were negatively impacted by 4.4 percentage points due to generic drug introductions in the last 12 months.

Prescriptions filled, which have slowed industrywide since December, continued that trend in March, especially the last two weeks surrounding Easter.

Total prescriptions filled at comparable stores decreased 0.1 percent. Calendar day shifts accounted for a negative impact of 1.3 percentage points on both comparable pharmacy sales and numbers. March prescriptions filled also were negatively impacted by 1.6 percentage points by the switch of prescription allergy medicine Zyrtec to over-the-counter status and a slower flu season for prescriptions compared to last year.

Pharmacy sales accounted for 64.5 percent of total sales for the month.

Calendar 2008 sales were $14,991,814,000, an increase of 11.5 percent from $13,447,551,000 in 2007.

Fiscal 2008 year-to-date sales for the seven months were $34,532,526,000, up 10.4 percent from $31,265,317,000. Comparable store sales for the fiscal year to date increased 5.0 percent.

Walgreens opened 39 stores during March, including five relocations, acquired one store and closed one.

At March 31, Walgreens operated 6,271 drugstores (including 89 home care division locations, 12 specialty pharmacies and two mail service facilities) in 49 states and Puerto Rico, versus 5,675 a year ago. The company also operates 154 Take Care Health Clinics. Franchisees of Option Care, Inc., a wholly owned subsidiary of Walgreens, are not included in Walgreens store count.

Please note: Monthly sales numbers are preliminary and unaudited. Comparable stores are defined as those locations open for at least 12 consecutive months without closure for seven or more consecutive days and without a major remodel or a natural disaster in the past 12 months. Relocated and acquired stores are not included as comparable stores for the first 12 months after the relocation or acquisition.