In this article, Walgreens reported fiscal first-quarter earnings and revenue that exceeded expectations by shutting stores and reducing costs to navigate a challenging period. For the three-month period ending Nov. 30, Walgreens maintained its fiscal 2025 adjusted earnings guidance at $1.40 to $1.80 per share, without providing annual sales guidance. The company previously estimated revenue for the fiscal year to be between $147 billion and $151 billion.
Despite the positive results, Walgreens’ shares surged by 27% on Friday. CEO Tim Wentworth stated that the company made progress on financial and strategic goals, focusing on stabilizing its U.S. retail pharmacy business. The past year was tumultuous for Walgreens due to various challenges, including pharmacy reimbursement pressure and softer consumer spending.
During the fiscal first quarter, Walgreens reported sales of $39.46 billion, a 7.5% increase from the previous year. The company incurred a net loss of $265 million, or 31 cents per share, primarily due to higher operating losses related to store closures. Walgreens plans to close 1,200 underperforming stores over the next three years.
Adjusted earnings for the quarter were 51 cents per share, excluding certain items. Walgreens is also implementing changes in labor forecasting and scheduling to enhance the in-store experience for customers, patients, and employees. Despite challenges in consumer discretionary spending, the company is working on its retail strategy to drive growth.
In the fiscal first quarter, Walgreens saw growth across its three business segments. The U.S. retail pharmacy division reported sales of $30.87 billion, with pharmacy sales increasing by 10.4%. Total prescriptions filled in the quarter reached 316.3 million, a 1.5% increase from the previous year. Retail sales declined due to a weaker cough, cold, and flu season.
Sales from the U.S. health-care unit rose to $2.17 billion, reflecting growth in primary-care provider VillageMD and specialty pharmacy company Shields Health Solutions. The international unit, operating over 3,000 retail stores abroad, recorded $6.43 billion in sales, with the U.K.-based drugstore chain Boots showing a 4.5% increase in sales.
