Walgreens 2014 Annual Report Download - page 50

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severance and other costs. This store optimization plan is expected to result in an annual operating income
benefit of $40 million to $50 million beginning in fiscal 2015. The amounts and timing of all estimates are
subject to change. The actual amounts and timing may vary materially based on various factors, including the
timing and number of store closings; the timing and amount of sublease income and other lease expense; factors
relating to real estate including sale proceeds; asset write-downs and other factors affecting inventory value;
changes in management’s assumptions; and other factors. See “Cautionary Note Regarding Forward-Looking
Statements” below.
In addition, as part of our goal to establish an efficient global platform, we are pursuing a multi-faceted cost-
reduction initiative across the enterprise with the goal of realizing $1 billion in cost savings by fiscal year
2017. This effort is focused on several areas including corporate costs, distribution costs, field costs and store
costs. The Company anticipates that aspects of this multi-faceted plan will result in restructuring and other
special charges as it is implemented over the next three fiscal years. See “Cautionary Note Regarding Forward-
Looking Statements” below.
OPERATING STATISTICS
Percentage Increases/(Decreases)
2014 2013 2012
Fiscal Year
Net Sales 5.8 0.8 (0.8)
Net Earnings Attributable to Walgreen Co. (21.1) 15.2 (21.6)
Comparable Drugstore Sales 4.9 (1.3) (3.6)
Prescription Sales 7.9 0.4 (3.1)
Comparable Drugstore Prescription Sales 6.8 (1.7) (6.1)
Front-End Sales 2.1 1.5 3.6
Comparable Drugstore Front-End Sales 2.0 (0.7) 0.6
Gross Profit 2.1 3.8 (0.7)
Selling, General and Administrative Expenses 2.6 3.9 1.9
Percent to Net Sales
2014 2013 2012
Fiscal Year
Gross Margin 28.2 29.3 28.4
Selling, General and Administrative Expenses 23.6 24.3 23.6
Other Statistics
2014 2013 2012
Fiscal Year
Prescription Sales as a % of Net Sales 64.2 62.9 63.2
Third Party Sales as a % of Total Prescription Sales 96.5 95.8 95.6
Number of Prescriptions (in millions) 699 683 664
Comparable Prescription % Increase/(Decrease) 1.8 1.1 (8.4)
30-Day Equivalent Prescriptions (in millions) * 856 821 784
Comparable 30-Day Equivalent Prescription % Increase/(Decrease) * 3.9 3.2 (5.1)
Total Number of Locations 8,309 8,582 8,385
* Includes the adjustment to convert prescriptions greater than 84 days to the equivalent of three 30-day
prescriptions. This adjustment reflects the fact that these prescriptions include approximately three times the
amount of product days supplied compared to a normal prescription.
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