Essay on Walgreens Company Analysis

941 Words 4 Pages
Product Market Analysis
Stock: Walgreen Co. (WAG)

52 Wks

Price Information: Hi Lo EPS DPS Price

Buy date: 1-18-06 49 41 1.57 .26 43.91
Sell date: 4-19-06 49 41 1.57 .26 44.12

Walgreen Co. engages in the retail sale of prescription and nonprescription drugs, and general merchandise, through a drugstore chain in the United States. It is the nation’s largest drugstore chain by sales. General merchandise includes cosmetics, toiletries, household items, food, beverages, and photofinishing. It also provides services at the drugstore counter, as well as through the mail, by telephone, and on the Internet. As of October 31, 2005, the company operated 5,000 stores in 45 states and Puerto
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Calendar year-to-date sales were $11,766,714,000, an increase of 10.3 percent from $10,666,592,000 in 2005. Fiscal year-to-date sales for the seven months were $27,150,196,000, up 10.3 percent from $24,618,754,000. Comparable store sales for the fiscal year to date increased 6.4 percent. Comparable store front-end sales decreased 3.1 percent during March. Walgreen’s opened 43 stores during March, including six relocations. At March 31, the company operated 5,193 drugstores in 45 states and Puerto Rico, versus 4,793 a year ago. Store counts include 37 home care division locations this year and 31 last year. Although arch rivals Walgreen Co. in terms of overall revenues is the leader, rival competitors in the industry, CVS Corporation in particular, is the largest drugstore chain in the United States in terms of stores and number of prescriptions filled. CVS operates more than 4,100 stores in 27 states throughout the nation. Nearly 10 percent of all prescriptions filled in the United States are handed by CVS pharmacies. While CVS Corporation market capital in sales top at 22.3 billion dollars at the end of the last quarter, it was no comparison to the pharmacy industry leader, Walgreen’s, who topped at 43.4 billion in sales.

Earnings and Financial Analysis
Amounts in Millions 2003 2004 2005
Net Sales 8,720.8 9889.1 10,987
Costs and Deduction 8315.8 9391.5 10,211.4
Net Operating Income 405.0 497.6 775.6
Earnings

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