Longs Drug Says 2nd-Quarter Earnings Won’t Meet Forecasts

Longs Drug Stores Corp. said its fiscal second-quarter earnings will fall more than forecast as job cuts and higher energy costs led shoppers to curb spending in California, where the company operates more than 350 of its 425 stores.

Profit in the quarter ending July 26 will be 28 to 30 cents a share, compared with 46 cents a year earlier, the company said. Analysts’ average estimate was 36 cents, according to First Call/Thomson Financial.

Same-store sales will rise 4.8% to 5%, less than the retailer’s previous forecast of 6.5%, Longs said.

The Walnut Creek-based drugstore chain expects total sales to rise 5% to 5.2% in the quarter.

Longs Drug will review its full-year estimate when the company releases second-quarter results Aug. 22.

Longs said it added six stores during the quarter as part of a plan to open at least 20 this fiscal year. Longs shares fell 40 cents to close at $23.01 on the New York Stock Exchange. The stock has fallen 24% in the last three months.