Walgreen profit margin slips on more promotions, slower generics

(Reuters) – Walgreen Co (WAG), the largest U.S. drugstore operator, reported higher first-quarter sales but said an increase in promotions and a slowdown in the introduction of higher-profit generic drugs cut into the gross profit margin. The chain’s gross profit margin fell 1.3 percentage points to 28.1 percent of sales, hurt by increased promotions aimed at getting shoppers into stores, and a slowdown in the introduction of new generic drugs.

    

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