Business news with words analysts+chain+profits. 3 news.

Drugstore chain Walgreen Co. used cost-cutting to help it overcome tougher economic conditions in its fiscal first quarter, reporting a modest 5.5 percent profit increase Friday that surpassed Wall Street's expectations. The Deerfield, Ill.-based company also stepped up its already rapid expansion pace, opening a record 169 new stores to rocket past the 6,000 mark. Walgreen's earnings bump over the same quarter a year ago was notable in the face of challenges that have cut into the profits other pharmacy retailers. Net earnings for the September-through-October period were $455.5 million, or 46 cents a share, up from $431.7 million, or 43 cents a share, in the same period a year earlier. That was 2 cents a share above the consensus estimate of analysts surveyed by Thomson Financial. Revenue rose 10 percent to $14 billion from $12.7 billion, slightly below the $14.11 billion expected by analysts.

Gap, the nation's largest clothing chain, and Abercrombie & Fitch, a popular shopping spot for teens and college students, reported profits above analysts' estimates after they cut expenses to cope with slowing sales.

All eyes will be looking to see whether trading in the retail sector is suffering a slowdown when Debenhams unveils preliminary results on Tuesday; pre-tax profits of £125m-£135m are expected. The department store chain's shares dipped last week on analysts' concerns that retailers could soon feel the impact of the global financial credit crunch. Its high gearing raised especial concern. But sales of clothing lines are expected to be up on last year.