Retail

Walgreens’ Q2 Results Looking Strong

The 2015–2016 winter was unseasonably warm for many parts of the U.S., and while most experts agree that the higher temperatures had an observable effect on apparel sales, few were tolling the bell for pharmacy chains like Walgreens when flu season turned out mild.

Even if they had been, it looks that Walgreens made it through the winter just fine.

Walgreens Boots Alliance announced its Q2 and fiscal year 2016 data on Tuesday (April 5), and its Retail Pharmacy USA sector saw its sales last quarter increase to $21.5 billion — a 2.1 percent year-over-year spike. Comparable store sales also increased by 2.2 percent.

“I am pleased with how we are working across the company to transform our businesses and position ourselves for success in rapidly changing markets,” Stefano Pessina, Walgreens Boots Alliance executive vice chairman and CEO, said in a statement. “In addition, we continued to make good progress in the quarter in reducing costs and establishing more efficient working practices, which contributed to overall adjusted earnings growth. Looking ahead, we remain on track to achieve our expectations for this fiscal year, as we work to mitigate lower pharmacy reimbursement rates and challenging retail sales environments.”

Pharmacy sales remained the economic engine for the company in Q2, with 65 percent of all sales attributable to this division. That translates into 233 million prescriptions and immunizations filled or administered over adjusted 30-day periods within the quarter — 3.9 percent more than Q2 2015. Overall, Walgreens Boots Alliance claimed $1.4 billion in attributable net earnings for Q2, a 14.4 percent year-over-year increase.

As a result of the positive sales growth, the company adjusted share guidance up $0.05 to a low-end figure of $4.35 and a high water mark of $4.55 per share.

All in all, it can be said that Walgreens Boots Alliance is in excellent financial health heading into Q3 2016.

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