Walgreen 1st-Quarter Earnings Meet Forecasts

Walgreen Co. said earnings grew 23% to $127.8 million, or 13 cents a share, in its fiscal first quarter, matching forecasts, as prescription sales fueled revenue growth and costs fell. The drugstore operator’s sales rose 20% to $4.82 billion and sales at stores open at least a year jumped 14%, bolstered partly by demand for vitamins and photo-developing services. Prescription sales, which make up half of the retailer’s revenue, climbed about 21% at stores open at least a year. Profit also got a boost from lower inventory and administrative costs as it invested in new computer systems and distribution centers. Walgreen opened 94 stores during the quarter and plans to more than double its number of outlets, from 2,894 to about 6,000 by 2010. This year, it will add 350 new stores, including closings and relocations, the company said. Shares in Walgreen, based in Deerfield, Ill., dipped 69 cents to close at $28.56 on the NYSE.