The Walgreens store on State and Randolph streets in Chicago.
Nancy Stone | Chicago Tribune | Tribune news service via Getty Images
Walgreens Boots Alliance on Thursday reported quarterly sales and earnings above expectations as its retail sales rebounded and online shopping grew.
But shares fell about 2% in pre-market trading as demand for Covid-19 vaccines faded and the company reiterated instead of increasing its forecast for the year. He said he expects adjusted earnings per share to grow by a low digit.
This is what the company reported compared to what analysts expected for the three-month period that ended May 31, according to Refinitiv data:
- Earnings per share: 96 cents adjusted compared to the expected 92 cents
- Revenue: $ 32.6 billion compared to projected $ 32.06 billion
During the quarter, net income fell to $ 289 million, or 33 cents per share, from $ 1.2 billion, or $ 1.38 per share, a year earlier. The sharp drop reflected a $ 683 million charge related to its opioid deal with the state of Florida, a drop in U.S. pharmacy sales since it surpassed a large volume of vaccines a year ago. against Covid-19 and investments in its expanding healthcare business.
Excluding items, the company earned 96 cents per share, surpassing the 92 cents analysts surveyed by Refinitiv expected.
Sales fell to $ 32.6 billion from $ 34.03 billion the previous year. Analysts had expected $ 32.06 billion.
Walgreens has increased sales during the pandemic as customers turned to its stores for Covid-19 vaccines and testing. This demand is fading, pushing the company to drive growth in other ways.
The company administered 4.7 million vaccines in the third quarter, a sharp drop from 15.6 million vaccines in the first quarter and 11.8 million in the second quarter.
Healthcare has become a major push, with Walgreens reaching an agreement with VillageMD to open hundreds of medical offices in its stores.
Walgreens has also expanded its online options, such as edge-to-edge collection and delivery, to try to prevent customers from buying toothpaste, soap and other items from online players like Amazon. The company said its digital options gained popularity during the quarter, growing 25% from a year ago, in addition to 95% growth over the one-year period. Growth was driven by 2.8 million collection orders the same day, the company said.
In the United States and the United Kingdom, retail sales increased as consumers came out again. Sales at the same stores in the US rose 2.4%, not including tobacco, and 24% for Boots UK retail.
Earlier this week, Walgreens said it would stop plans to sell its Boots business based in the UK, citing instability in the markets. The company said in January it was investigating strategic options for the division, including a possible sale.
As of Wednesday’s close, Walgreens shares were down about 22% so far this year. Shares closed Wednesday at $ 40.87, bringing the company’s market value to $ 35.30 million.
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