Pharmacy sales at the U.S.' largest drug store chain rose almost 6 percent, helping lift overall revenue. As Fred Katayama reports, Walgreens was optimistic about its outlook.
Filling more prescriptions from Medicare's subsidized drug program lifted quarterly sales at Walgreens Boots Alliance. Pharmacy sales at the U.S.' largest drug store chain rose almost 6 percent, helping lift overall revenue. The company also saw strong sales in health and wellness and photo products but weakness in some convenience categories. Walgreens said it would continue to focus on strengthening its beauty offerings for future growth by rolling it out to more stores. And it said its $9.4 billion deal to acquire rival Rite Aid last year was progressing as planned. Profit fell because of fluctuations in the value of warrants exercised to buy a stake in the drug wholesale company, AmerisourceBergen. Evercore ISI analyst Ross Muken said, "... Pharmacy comps and international wholesale outperformed on the revenue line, while retail was broadly weak in the U.S. and international ... All-in, this was a mixed set of results..." But Walgreens was optimistic about its outlook, raising the lower end of its profit forecast for the fiscal year.