On Tuesday, Walgreens Boots Alliance, the popular pharmacy chain, revealed softer-than-anticipated earnings for the third-quarter which ended on May 31st. Although sales were up 8.6%, coming in at $35.4 billion, they only slightly exceeded the estimated $34.3 billion. Meanwhile, the company’s adjusted earnings were $1 per share, versus analysts’ expectations of $1.07 per share.
According to the company, the decrease in demand for Covid-19 related services amongst consumers, along with a shift in consumer behaviour led to lower sales numbers. Walgreens also claimed that customers are now more cautious and are opting for value products instead, which resulted in disappointing results for the quarter.
As for their full-year projections, the pharmacy chain said that it has downgraded its adjusted earnings outlook from a range of $4.45 to $4.65 per share to a new range between $4.00 to $4.05 per share, based on the current “challenging consumer” conditions.
Although Walgreens’ sales numbers were better than the estimate, investors are less impressed by the earnings outlook and the company’s stock price already dropped by 7.3% in early trading.
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