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March 31, 2021, 7:27 a.m. EDT

Walgreens sales miss expectations after weak cold and flu season

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By Tonya Garcia

Walgreens Boots Alliance Inc. /zigman2/quotes/203410933/composite WBA +1.05% reported fiscal second-quarter net income of $1.03 billion, or $1.19 per share, up from $946.0 million, or $1.07 per share last year. Adjusted EPS of $1.40 beat the FactSet consensus for $1.10 per share. Sales of $32.78 billion were up from $31.34 billion last year but below the FactSet consensus for $36.59 billion. Walgreens total excludes sales from discontinued operations of $4.8 billion. Comparable sales in the U.S. fell 3.5% due to a weak cough, cold and flu season. Comp sales for Boots UK fell 17.9% as COVID-19 restrictions reduced foot traffic on major high streets and transportation hubs. "Overall, we have achieved a good financial quarter with results well ahead of expectations, despite significant impacts from COVID-19, and we have raised our full-year EPS guidance," said Walgreens' new Chief Executive Roz Brewer in a statement. The former Starbucks Corp. /zigman2/quotes/207508890/composite SBUX +0.64% executive assumed the role on March 15. "I am optimistic about our ability to drive sustainable, long-term value for our shareholders, while acknowledging that there is still work to be done to stabilize the base business." Walgreens raised its fiscal 2021 adjusted EPS guidance to mid-to-high single digit growth in constant currency from low single-digit growth. The pharmacy retailer also expects the $6.5 billion divestiture of Alliance Healthcare to be complete before the end of the fiscal year. Walgreens says it has administered eight million COVID-19 vaccinations and conducted five million COVID-19 tests. Walgreens stock rose 2.6% in Wednesday premarket trading and have gained 15.8% over the past year. The S&P 500 index /zigman2/quotes/210599714/realtime SPX +1.49% is up 53.2% for the last 12 months.

/zigman2/quotes/203410933/composite
US : U.S.: Nasdaq
$ 54.71
+0.57 +1.05%
Volume: 2.94M
May 14, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
3.42%
Market Cap
$47.29 billion
Rev. per Employee
$421,562
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/zigman2/quotes/207508890/composite
US : U.S.: Nasdaq
$ 111.20
+0.71 +0.64%
Volume: 6.84M
May 14, 2021 4:00p
P/E Ratio
133.19
Dividend Yield
1.62%
Market Cap
$131.03 billion
Rev. per Employee
$67,371
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/zigman2/quotes/210599714/realtime
US : S&P US
4,173.85
+61.35 +1.49%
Volume: 1.91B
May 14, 2021 5:02p
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