Walgreens Swings to 3Q Loss, Hurt by U.K. Challenges
09 July 2020 - 10:07PM
Dow Jones News
By Micah Maidenberg
Walgreens Boots Alliance Inc. said demand fell off in its
international business during the drugstore chain's latest quarter
with consumers in the U.K. staying at home due to the
coronavirus.
A "dramatic reduction" in customer traffic at its Boots UK
stores, including an 85% decline in April, weighed on results for
the business, Walgreens said. The company said it recorded non-cash
impairment charges of $2 billion tied to the Boots UK unit.
Overall, Walgreens said it lost $1.71 billion, or $1.95 a share,
for its fiscal third quarter ended May 31, compared with a profit
of $1.03 billion, or $1.13 a share, the year earlier. Its adjusted
profit fell to 83 cents a share and was short of expectations.
The company generated $34.6 billion in sales, roughly flat year
over year. Analysts polled by FactSet predicted $34.3 billion in
sales for the latest period.
In the U.S. retail unit, sales rose about 3% from the year
earlier, to $27.4 billion for the latest quarter. Pharmacy sales
were up 4.6%, while prescriptions filled in the third quarter
decreased 1.3%.
"Globally, pharmacy volume was impacted by a drop in doctor
visits and hospital patient admissions," the company said.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
July 09, 2020 07:52 ET (11:52 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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