Walgreen Co. said Monday that earnings for the fiscal first quarter increased 42 percent to a record $18.8 million, or 31 cents a share, from $13.2 million, or 22 cents a share, a year earlier.
The Deerfield-based company set another record in its sales for the first quarter, ended Nov. 30. Sales rose 16.1 percent, to $1.1 billion, from $960.3 million in the year-earlier period.
The net earnings increase was aided by the lower tax rate now in effect. Earnings were also helped by comparison with fiscal 1987`s first quarter, which was hurt by the new tax law and by startup and renovation costs associated with the Medi Mart acquisition.
”Walgreens opened 25 drugstores in the first quarter, continuing its expansion strategy,” said Chairman Charles R. Walgreen III.
”Last year, we increased market penetration in 19 of our top 20 markets. We now rank first or second in 38 of our leading 56 markets.”
Sales of the company`s drugstore division, which accounts for more than 97 percent of corporate sales, rose 16.4 percent in the quarter. Sales in comparable stores-those open at least one year-were up 12 percent, indicating real sales growth.
Walgreens said it plans to open 100 drugstores this year and each coming year for the foreseeable future.
