Walgreens Profit Falls, Sales Pick Up
June 27 2019 - 8:41AM
Dow Jones News
By Aisha Al-Muslim
Walgreens Boots Alliance Inc.'s profit fell in the latest
quarter even as sales increased.
The drugstore chain, based in Deerfield, Ill., said it improved
U.S. retail sales, U.S. same-store sales, and prescription growth
in the most recent quarter.
For the third quarter ended May 31, profit fell 23.6%, partly
driven by its gross profit falling. Gross profit decreased in the
quarter about 4.2% as the company faced reimbursement pressure in
pharmacy, as well as a lower pharmacy margin and retail sales at
Boots UK.
Net income slipped to $1.03 billion, or $1.13 a share, down from
$1.34 billion, or $1.35 a share, a year earlier. Adjusted earnings
came in at $1.47 a share, higher than the $1.43 a share that
analysts polled by Refinitiv expected.
Walgreens said sales rose 0.7% to $34.6 billion, primarily due
to growth in its U.S. retail pharmacy and pharmaceutical wholesale
divisions. Analysts expected Walgreens to report sales of $34.46
billion.
In the quarter, U.S. retail pharmacy sales rose 2.3% to $26.5
billion, reflecting higher brand inflation and prescription
volume.
Same-store pharmacy sales increased 6%, while comparable retail
sales were down 1.1% primarily due to the continued de-emphasis of
tobacco.
The stock rose 1.2% to $53 in pre-market trading Thursday.
Shares are down 21% in the last year.
For fiscal 2019, Walgreens maintained its adjusted earnings per
share at constant currency rates to be roughly flat.
(END) Dow Jones Newswires
June 27, 2019 08:26 ET (12:26 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
Walgreens Boots Alliance (NASDAQ:WBA)
Historical Stock Chart
From Mar 2024 to Apr 2024
Walgreens Boots Alliance (NASDAQ:WBA)
Historical Stock Chart
From Apr 2023 to Apr 2024