Walgreen Company

Walgreen Co., the largest U.S. drugstore chain, will crack down on sales of cigarettes and other tobacco products to children as part of an agreement with 40 states. The company, which operates 3,651 stores in 43 states, will stop selling cigarette papers and pipes to children, improve the training of store clerks to end sales to minors, and notify customers that it will check the identification of anyone who looks to be under age 27, Walgreen and state officials said. Walgreen is the first U.S.

Drugstore chain Walgreen Co. has withdrawn its $2.8-billion bid to acquire Longs Drug Stores, apparently helping to ease the path for Longs' $2.7-billion acquisition by CVS Caremark Corp. Longs had already accepted CVS Caremark's lower bid of $71.50 a share, a deal approved by antitrust regulators. Walgreen Chief Executive Jeffrey Rein sent a letter to Longs' board of directors informing it of Walgreen's decision to withdraw its bid.

Eastman Kodak Co., the world's largest photography company, is retaking the photo kiosk business at Walgreen Co. from Fuji Photo Film Co., making it the choice of the three biggest U.S. retailers of prints. Walgreen, the top U.S. drugstore chain, has installed Kodak kiosks at a quarter of its 4,859 stores.

Walgreen Co., the largest U.S. drugstore chain, said fiscal second-quarter earnings rose 14% as the company added stores and increased sales of generic drugs. Net income increased to $370.9 million, or 36 cents a share, from $326.6 million, or 32 cents, a year earlier, Walgreen said. Sales rose 13% to $8.45 billion. Shares of Deerfield, Ill.-based Walgreen fell $1.32 to $30.50 on the NYSE.

Walgreen Co. posted 25% quarterly earnings growth to cap its biggest-ever expansion year, but its stock tumbled on continuing investor concern about fallout for drugstore chains from Wal-Mart Stores Inc.'s plan to sell discounted generic drugs. The profit gain was fueled by an 18% increase in prescription drug sales from a year earlier and a 16% jump in total revenue. Although the resulting $412.

chicago -- Shares of drugstore chain Walgreen Co. tumbled Monday after the usually solid retailer's fiscal fourth-quarter revenue fell sharply short of expectations, causing its first earnings decrease in nearly a decade. Shares sank more than 15%, on pace to be the largest single-day decrease in roughly 20 years, before recovering slightly.

A jury cleared Walgreen Co. of racial discrimination alleged in a $2.5-million civil lawsuit brought by four black Texas men who say they were wronged at a Reno drugstore four years ago. In their lawsuit in Washoe County District Court, the men claimed that a photo lab clerk shouted a racial slur, slammed a door and denied them service after they complained about the quality of their photos. Walgreens maintained the incident was a case of poor customer service, not bias.

Drugstore chain Walgreen Co. said Monday that its fiscal third-quarter profit rose 2% as it focused on cost control and maintained a rapid expansion pace in a difficult retail environment. Despite the modest gain, the results were slightly short of Wall Street expectations and Walgreen shares fell back after initially climbing nearly 3%. Overall, however, analysts said the Deerfield, Ill.-based company's cost discipline and continued advances in a weak economy showed it had turned a corner after recent sluggishness.

Shares of Walgreen Co. fell to their lowest price in almost five years Monday after the drugstore operator reported disappointing revenue in its fiscal fourth quarter, pointing to promotions that failed to pay off. Walgreen said cost cuts and greater sales lifted its profit 12% for the quarter. But its revenue fell short of expectations, and the company said it engaged in too many discounts and promotions as it tried to ramp up sales in the face of difficult economic conditions. Customers did not pick up as many impulse items as Walgreen expected.

The Los Angeles City Council on Friday approved a controversial plan to build a 14,000-square-foot Walgreens drugstore in Eagle Rock over the objections of critics, who argued that the store is the last thing the area needs. The council's 10-0 action without comment contrasted sharply with a City Hall public hearing earlier this week, when more than a dozen speakers urged a council committee to reject the store, saying that it violated the Colorado Boulevard specific plan.