Walgreens profits rose 86 percent in fourth-quarter
The largest U.S. drugstore retailer, Walgreens Co., says it fourth-quarter profit rose 86 percent after its consumer-loyalty card helped to boost sales.
Walgreens net income increased to $657 million from $353 million in the same quarter last year.
CEO, Gregory Wasson used data from loyalty-card holder purchase to improve the selection of merchandise that is at the front of Walgreen’s stores. Sales advanced 4.6 percent in locations have been open at least one year.
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“While customer traffic remains challenged, we believe we are starting to see the benefit of Balance Rewards,” Deborah Weinswig, an analyst at Citigroup Inc. in New York, wrote in a note today. She recommends buying Walgreen shares.
Excluding items, the company earned 73 cents per share. Analysts were expecting 72 cents per share, according to Thomson Reuters.
Sales rose 5.1 percent to $17.94 billion; a tad shy of the $17.95 billion that analysts had projected.