Drug store chain operator Walgreen Company (WAG) on Thursday posted disappointing June comparable sales numbers and announced the acquisition of multiple small pharmacy chains.

The Deerfield, IL-based company said that June comparable sales fell 10% from last year, hurt partially by lower generic drug prices. On average, Wall Street analysts expected a smaller drop of 8.2%. Same-store sales are a key metric used to measure a retailer’s performance, since they only take into account sales at stores open at least one year.

Total sales fell 6.8% from last year to $6.04 billion.

In a separate announcement, WAG said it has entered into a deal to buy a total of 144 drug stores from Stephen I. LaFrance Holdings and members of the LaFrance family. The transaction includes USA Drug, Super D Drug, May’s Drug, Med-X and Drug Warehouse Stores in the mid-southern United States. No financial terms of the deal have yet been disclosed.

Walgreen shares fell 51 cents, or -1.7%, in premarket trading Thursday.

The Bottom Line
Walgreen currently offers a 3.71% dividend yield, based on Tuesday’s closing price of $29.61 and the company’s annualized dividend payout of $1.10 per share.

Walgreen Company (WAG) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

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