Walgreens Profit Falls as U.K. Business Struggles
15 Outubro 2020 - 9:36AM
Dow Jones News
By Micah Maidenberg
Walgreens Boots Alliance Inc. said its overseas business
struggled again in its latest quarter as the Covid-19 pandemic cut
into customer traffic in the U.K.
The drugstore chain on Thursday said retail sales at its Boots
U.K. unit fell more than 29% on a comparable basis, with the
coronavirus especially reducing consumer visits at the stores on
major shopping streets, in train stations and in airports.
The Boots U.K. business has emerged as a source of concern for
investors and a challenge for the Deerfield, Ill., company, which
is primarily tied to the U.S. market. In July, Walgreens said it
would cut about 4,000 jobs in the U.K. and recorded $2 billion in
impairment charges tied to the Boots business.
Walgreens said sales in its retail-pharmacy unit in the U.S.
totaled $27 billion in the latest quarter, up 3.6%. Filled
prescriptions increased 3.6% on a comparable basis and demand for
health, personal-care and personal-protective products rose. Those
gains were partially offset by weaker sales for beauty items,
according to the company.
Overall, sales for its fiscal-fourth quarter that ended Aug. 31
rose to $34.75 billion from $33.95 billion. Analysts polled by
FactSet predicted $34.37 billion for the latest period.
Walgreens said profit fell to $373 million, or 43 cents a share,
from $677 million, or 75 cents a share, the year earlier. After
adjustments, the company reported earnings of $1.02 cents a share,
better than expectations from analysts.
Shares rose 2.1% in premarket trading.
The company said it believes the Covid-19 pandemic will continue
to hamper financial results during the first half of its new fiscal
year, but it anticipates better conditions after that, with
adjusted-profit growth picking up in the second half.
"The company anticipates a gradual reduction in Covid-19
impacts," it said.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
October 15, 2020 08:21 ET (12:21 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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