Walgreens Sales Growth Falls Short--Update
October 11 2018 - 8:47AM
Dow Jones News
By Kimberly Chin
Walgreens Boots Alliance Inc.'s shares slid in premarket trading
as weaker sales of non-pharmacy items put a damper on the drugstore
chain's sales growth.
Comparable retail sales in the fourth quarter fell 1.9% from a
year earlier in the U.S., weighed by less demand in the
general-merchandise and personal-care categories. Comparable retail
sales in its international segment fell 0.9% on a constant-currency
basis.
Overall sales rose 11% to $33.44 billion, as growth in
prescription volumes helped lift pharmacy sales. Walgreens said
U.S. pharmacy sales rose 17%, due primarily to its acquisition of
stores from Rite Aid Corp. Thursday, the company said the
integration remains on track and has helped it gain market share.
Analysts had expected Walgreens to report $33.78 billion in
revenue, according to a Refinitiv poll.
Shares fell 2.5% to $70.51. Walgreens stock has been flat for
the year.
Net income for the Deerfield, Ill.-based company rose 89% to
$1.51 billion, or $1.55 a share, from the same period a year ago.
On an adjusted basis, earnings per share came in at $1.48, above
the $1.45 expected by analysts.
The drugstore chain also gave earnings guidance for the fiscal
year 2019. It expects earnings growth between 7% to 12% at
constant-currency rates, and adjusted earnings per share in the
range of $6.40 to $6.70. Analysts expect adjusted earnings of $6.45
a share.
The company, whose roots date to 1901, has more than 18,500
stores across 11 countries.
Write to Kimberly Chin at kimberly.chin@wsj.com
(END) Dow Jones Newswires
October 11, 2018 08:32 ET (12:32 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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