Walgreens Boots Alliance on Thursday reported quarterly sales and earnings that came in above expectations as its retail sales bounced back, online purchases grew and it continued to administer Covid-19 vaccines.
The drugstore chain stood by its outlook for the full year, saying it expects adjusted earnings per share to grow by the low single-digits.
Shares of the company were down by about 2% in premarket trading.
Here’s what the company reported compared with what analysts were expecting for the three-month period ended May 31, based on Refinitiv data:
- Earnings per share: 96 cents adjusted vs. 92 cents expected
- Revenue: $32.6 billion vs. $32.06 billion expected
In 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.
Excluding items, the company earned 96 cents per share, exceeding the 92 cents expected by analysts surveyed by Refinitiv.
Sales decreased to $32.6 billion from $34.03 billion a year earlier. Analysts were expecting $32.06 billion.
Walgreens has expanded online options, such as curbside pickup and delivery, to try to keep customers from buying toothpaste, soap and other items from online players like Amazon. The company said those digital options gained popularity in the quarter, growing 25%, from a year ago, on top of 95% growth in the year-ago period. The growth was fueled by 2.8 million same-day pickup orders, the company said.
In the U.S. and the U.K., retail sales picked up as consumers got out and about again. Same-store sales in the U.S. rose 2.4%, excluding tobacco, and 24% for Boots U.K. retail.
Earlier this week, Walgreens said it would halt plans to sell its United Kingdom-based Boots business, citing instability in the markets. The company said in January that it was looking into strategic options for that division, including a possible sale.
As of Wednesday’s close, Walgreens shares were down about 22% so far this year. Shares close Wednesday at $40.87, bringing the company’s market value to $35.30 billion.
This story is developing. Please check back for updates.
