A sign for US drugstore chain Walgreens is displayed outside its store in New York City on March 7, 2025.
Angela Weiss | AFP | Getty Images
Walgreens on Tuesday reported fiscal second-quarter earnings and revenue that topped expectations, as the retail drugstore giant benefits from cost cuts and prepares to go private.
The company is in the process of being taken private by Sycamore Partners in a roughly $10 billion deal that is expected to close in the fourth quarter of this year. The company withdrew its fiscal 2025 guidance given the pending transaction. In January, it said it expects a full-year adjusted profit of $1.40 to $1.80 per share.
Here’s what Walgreens reported for the three-month period ended Feb. 28 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
Earnings per share: 63 cents adjusted vs. 53 cents expectedRevenue: $38.59 billion vs. $38 billion expected
The historic deal with Sycamore ends Walgreens’ tumultuous run as a public company, which began in 1927. The company has been squeezed by pharmacy reimbursement headwinds, softer consumer spending and competition from its main rival CVS, grocery and retail chains and Amazon. It’s also grappling with a troubled push into health care.
During the fiscal second quarter, Walgreens booked sales of $38.59 billion, up 4.1% from the same period a year ago, as sales grew in its U.S. retail pharmacy business and international segments.
The company reported a net loss of $2.85 billion, or $3.30 per share, for the fiscal second quarter. It compares with a net loss of $5.91 billion, or $6.85 per share, for the year-earlier period.
Excluding certain items, adjusted earnings were 63 cents per share for the quarter.
The results include a $4.2 billion charge related to a loss in value of its U.S. retail pharmacy and investment in primary care clinic chain VillageMD.
This story is developing. Please check back for updates.
