Shares of Walgreens Boots Alliance were down almost 4% on Thursday morning after having been up earlier in the premarket session. The drugstore chain's fiscal second-quarter financial results included some highlights but also raised some concerns among shareholders.
The numbers from Walgreens were mixed. Sales from continuing operations were up 3% from year-ago levels, with solid gains in the core Walgreens segment as well as in its international business. However, sales declined at the AllianceRx Walgreens unit, and net income from continuing operations fell 4% year over year to $883 million. After adjusting for certain accounting items, though, adjusted earnings of $1.59 per share were up 26% from the same period last year.
On the plus side, though, retail comparable sales growth of 14.7% in the U.S. was the highest in more than 20 years, and ongoing growth in digital sales has spurred greater use of pick-up services. Membership in the MyWalgreens loyalty program reached 96.1 million, up 10.9 million in the past six months, and the company opened three new automated micro-fulfillment centers as part of a longer-term strategy to embrace automation.
Looking ahead, though, Walgreens still expects earnings per share to grow only at low-single-digit percentages for fiscal 2022. With the company looking at strategic alternatives for Boots and seeking to focus more sharply on U.S. healthcare, there's a lot for Walgreens to clarify in the quarters ahead.
https://www.fool.com/investing/2022/03/31/why-walgreens-and-vipshop-left-the-market-mixed-th
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