The drugstore chain earned $522 million, or 53 cents per share, in its fiscal third quarter ended May 31, compared with a profit of $572 million or 58 cents per share, a year earlier.
Walgreen is cutting jobs, opening fewer stores than originally planned and revamping with a smaller selection of items as part of its plans to return to double-digit earnings per share growth under a new chief executive.
Sales rose 8 percent to $16.21 billion, while sales at stores open at least a year rose 2.8 percent.
Shares of Walgreen have jumped 27 percent so far this year, while shares of rival CVS Caremark Corp
(Reporting by Jessica Wohl, editing by Dave Zimmerman)