Walgreens Boots Q1 Results A Mixed Bag

Company wide first quarter sales were up at Walgreens Boots Alliance, but the company reported a decline in U.S. retail sales along with a net loss for the three months ended November 30.

Sales in the quarter at WBA were up 7.5% to $39.5 billion, reflecting sales growth across all business segment. Net loss in the first quarter was $265 million compared to a net loss of $67 million in comparable quarter the previous year. Loss per share in the first quarter was $0.31 compared to loss per share of $0.08 in the year-ago quarter.

"Our first quarter results reflect our disciplined execution against our 2025 priorities: stabilizing the retail pharmacy by optimizing our footprint, controlling operating costs, improving cash flow and continuing to address reimbursement models,” said Tim Wentworth, CEO of Walgreens Boots Alliance. “While our turnaround will take time, our early progress reinforces our belief in a sustainable, retail pharmacy-led operating model."

The U.S. Retail Pharmacy segment had first quarter sales of $30.9 billion, an increase of 6.6% from the year-ago quarter. Comparable sales increased 8.5% from the year-ago quarter. Pharmacy sales increased 10.4% and comparable pharmacy sales increased 12.7% in the quarter, each benefiting from higher branded drug inflation and prescription volume. 

Retail sales decreased 6.2% and comparable retail sales decreased 4.6% compared with the year-ago quarter, reflecting a weaker cough cold flu season and lower sales in discretionary categories.

The International segment had first quarter sales of $6.4 billion, an increase of 10.2% from the year-ago quarter, including a favorable currency impact of 3.6%.