Walgreens Boots Alliance beat second-quarter Wall Street sales and earnings despite a decline in retail comps.
Company net loss was $5.91 billion, or $6.85 per diluted share, versus net earnings of $703 million, or 81 cents per diluted share, in the year-earlier quarter, with the loss in the period reflecting non-cash impairment charges. Company net earnings adjusted for one-time events was $1.04 billion, or $1.20 per diluted share, versus $1 billion, or $1.16 per diluted share, in the year-prior quarter.
A Zacks Investment Research-published analyst consensus estimate on earnings per adjusted diluted share was 82 cents and revenue was $36.48 billion.
Sales were $37.05 billion versus $34.86 billion in the year-previous quarter, the company reported. Operating loss was $13.17 billion versus operating income of $197 million in the year-before period while adjusted operating income was $900 million versus $1.22 billion.
In the U.S. Retail Pharmacy segment, adjusted operating income was $752 million versus $1.07 billion in the year-past quarter as net sales increased to $28.86 billion from $27.58 billion. Comparable sales gained 4.7% but retail comps decreased 4.3% year over year, the company noted, as Walgreens stores faced a challenging retail environment, channel shift and a weaker respiratory season. The results included a 170 basis point impact from lower seasonal and general merchandise sales, a 90 basis point direct impact from softer cold, cough and flu trends; and a 40 basis point impact from adverse January weather.
In announcing the financial results, Walgreens CEO Tim Wentworth pointed to “continued topline growth alongside another quarter of strong execution in pharmacy, as we look to re-energize and evolve its impact both at Walgreens and at large. As we continue to operate in a challenging retail environment, we are taking actions to focus on customer engagement and value. We remain confident in our goal of achieving $1 billion in cost savings this year. We are continuing to strategically review our portfolio over the next three months in an effort to ensure it drives growth and delivers value. Our team members, led by WBA’s new executive committee with a track record of operational excellence, are powering our progress as we map growth opportunities, aim to create long-term value across our businesses and execute the hard work to simplify and strengthen WBA.”
