Walgreen Profit Rises but Misses Estimates
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Walgreen Co., the biggest U.S. drugstore chain, reported disappointing fourth-quarter profit growth of 1.4% after Hurricane Katrina closed stores.
Net income climbed to $329 million, or 32 cents a share, from $324.4 million, or 32 cents, a year earlier. Sales rose 11% to $10.5 billion. Sales at stores open at least a year, a key measure of retail health, increased 7%.
The hurricane shut 32 locations and ruined merchandise and equipment at stores in and around New Orleans, boosting costs by $54.7 million, or 3 cents a share.
Gains in prescription sales slowed as Walgreen, based in Deerfield, Ill., offered more lower-priced generic drugs.
Walgreen shares fell $1.01 to $41.50.
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