Walgreen Co reported higher quarterly sales on Friday, but an increase in promotions and a slowdown in the introduction of higher-profit generic drugs cut into its gross profit margin at the largest U.S. drugstore operator.Earnings also rose in the fiscal first quarter, but gross profit margin fell 1.3 percentage points to 28.1 percent of sales amid what Chief Executive Greg Wasson called "the continued soft economy."Wasson said he expects profit margin in its pharmacy business will also be hurt in the current quarter due to fewer new generic drugs, but this pressure should ease in the second half of the year.Rival drugstore chain Rite Aid Corp on Thursday lowered its full-year profit forecast for the same reason. Generic drugs generate less revenue but are more profitable than brand drugs.
Rite Aid Corporation is a retail drugstore chain in the United States. Shares of RAD fell by 4.64% or $-0.24/share to $4.93. In the past year, the shares have traded as low as $1.19 and as high as $6.15. On average, 30469300 shares of RAD exchange hands on a given day and today's volume is recorded at 34674808.
Walgreen Co. (Walgreens) together with its subsidiaries, operates the drugstore chain in the United States. Shares of WAG traded higher by 0.68% or $0.39/share to $57.33. In the past year, the shares have traded as low as $35.77 and as high as $60.93. On average, 5735870 shares of WAG exchange hands on a given day and today's volume is recorded at 5295343.
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