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Retail

Walgreens Narrows Full-Year Profit Forecast, Takes $5.8bn Impairment

By Reuters
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Walgreens Narrows Full-Year Profit Forecast, Takes $5.8bn Impairment

Walgreens Boots Alliance cut the higher end of its profit forecast for fiscal-year 2024, citing economic challenges for its retail operations, and took a $5.8-billion (€5.4 billion) impairment related to its VillageMD business.

Walgreens has been grappling with decreased spending on personal care and beauty products by inflation-weary consumers, which has exacerbated the hit from waning demand for its COVID-19 vaccines and testing kits.

On an adjusted basis, Walgreens reported earnings of $1.20 per share for the quarter, compared with analysts' average estimate of 82 cents per share, according to LSEG data.

The company now expects an adjusted profit of $3.20 to $3.35 per share for its financial year ending 31 August, compared to the $3.20 to $3.50 per share range it gave in January.

Boots UK

Comparable retail sales at Boots UK increased 5.9% year-on-year during the second quarter as the business witnessed growth across all categories and increase in total retail market share.

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Boots.com continued to perform strongly with sales growing 16.8% during the quarter, representing over 17% of Boots' total retail sales.

Strategic Portfolio Review

Chief executive officer Tim Wentworth said in a statement, "We remain confident in our goal of achieving $1 billion (€930 million) 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.”

News by Reuters, additional reporting by ESM.

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