Where Will Walgreen Go Post-Earnings?
T = Trends for a Stock’s Movement
Walgreen operates a drugstore chain in the United States. The company provides its customers with access to consumer goods and services, pharmacy, and health and wellness services in communities across the U.S. Walgreen sells prescription and non-prescription drugs, as well as general merchandise that includes household items, convenience and fresh foods, photo finishing, and candy. General convenience and wellness merchandise is important to consumers across the nation, and Walgreen is a go-to shop for quick and efficient general merchandise and health and wellness experience for consumers that should continue well into the future.
It’s not all sunshine and happiness for Walgreen, but the drugstore operator did seem to wake up on the right side of the bed on Tuesday morning. Shares climbed as much as 3 percent in early trading after the company reported decent second-quarter earnings. Second-quarter sales increased 5.1 percent on the year to $19.6 billion, effectively in line with the mean analyst estimate. For the first half of the year, sales were up 5.5 percent at $37.9 billion. Comparable store sales increased 4.3 percent in the second quarter, but customer traffic declined 1.4 percent. A 3.4 percent increase in basket size is consistent with the idea that although there may be less foot traffic through Walgreen stores, those customers are purchasing more. Part of the catalyst for bigger baskets is the successful ongoing rollout of the Balance Rewards loyalty program, which had 100 million enrollees and 80 million active members in February.