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A surge in demand for COVID-19 tests and a vaccine helped Walgreens beat Wall Street’s expectations in the second quarter.
Sales soared as customers spent money on at-home COVID-19 tests and cold, flu and beauty products. The vaccine boosted pharmacy sales as the virus’s omicron surge in the U.S. peaked during the quarter.
Revenue at the company’s Boots stores in the U.K. also jumped as more customers returned to stores, despite omicron-fighting restrictions in place for much of the quarter.
Walgreens Boots Alliance Inc., based in Deerfield, Illinois, outside Chicago, generates most of its revenue from retail pharmacies in the U.S., where it operates nearly 9,000 stores. The company also operates nearly 2,300 Boots stores in the UK, with some in Ireland and Thailand.
Walgreens Chief Executive Rosalind Brewer said in January that the company was exploring “strategic options” for the Boots business it acquired a few years ago. The CEO said the move is in line with the company’s growing focus on U.S. healthcare. She said at the time that they hoped the review would proceed quickly.
The company said Thursday that the review is still ongoing.
Like arch rival CVS Health, Walgreens is offering more care options in the U.S. as it tries to be a steady resource for customers who want to improve their health or manage chronic problems.
The company has spent billions of dollars in a partnership with VillageMD to open a primary care practice with its pharmacies.
Overall, Deerfield, Illinois-based Walgreens Boots Alliance Inc. reported adjusted earnings of $1.59 per share for the quarter ended Feb. 28. Revenue rose about 3% to $33.76 billion.
Analysts on average expected earnings of $1.39 per share on revenue of $33.23 billion, according to FactSet.
Walgreens also said Thursday that it would maintain its forecast for full-year adjusted EPS growth in the low single digits.
Analysts forecast adjusted earnings of $5.02 per share for the full fiscal year through August. This would be an increase of about 2% from last year.
Shares of the company fell in premarket trading.
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