Walgreens Sales Rise but CEO Says Turnaround Will ‘Take Time’

Walgreens is reportedly seeing an uptick in sales as it prepares to go private.

The company released quarterly earnings Thursday (June 26) showing sales of $39 billion, a 7.2% increase from the same quarter last year, driven by growth in its American retail pharmacy and international segments.

“Third quarter results reflect continued improvement in our U.S. healthcare segment and benefits from our cost savings initiatives, while we continued to see weakness in our U.S. front-end sales,” CEO Tim Wentworth said in a news release.

“We remain focused on our turnaround plan, which will require time, disciplined focus and a balanced approach to manage future cash needs with investments necessary to navigate an evolving pharmacy and retail environment.”

Walgreens announced in March it had been sold to private-equity firm Sycamore Partners for $10 billion, with that deal expected to close in the second half of 2025.

According to the earnings release, Walgreens U.S. retail pharmacy segment saw quarterly sales of $30.7 billion, up 7.8% year over year, with comparable sales up 10.3% The increase was driven by pharmacy sales, which were up 11.8% for the quarter.

Retail sales fell 5.3%, the release added, “impacted by weaker sales in grocery and household, health and wellness, and beauty.”

The news comes as the government’s latest inflation data shows consumer spending dipping, “helping to reverse what seemed like relentless growth in gross domestic product (GDP) in previous quarters,” as PYMNTS wrote Thursday.

Findings from the Bureau of Economic Analysis showed the economy shrinking by 0.5% in the first quarter, a downward revision from the 0.2% dip that had been previously estimated.

The dip in Walgreens retail sales is happening as many consumers are scaling back their spending in the face of new tariffs.

Research by PYMNTS Intelligence found that more than 8 in 10 consumers are taking steps to offset the economic impact of tariffs on their pocketbooks. In fact, the average consumer is making nearly five such behavioral changes, while 44% of consumers have already altered their shopping habits to cope with tariff-induced price pressures.

“Retailers are reacting in several ways,” PYMNTS wrote earlier this month. “Major grocers, for example, are experimenting with ‘good, better, best’ product tiers, offering both premium domestic products and lower-priced imports in the same category.”