The COVID-19 vaccine and testing boosted Walgreens store sales growth to a level not seen in more than two decades, making the drugstore chain much higher than Wall Street’s expectations in the first quarter.

As more and more Americans seek enhanced injections, Walgreens distributed 15.6 million vaccines in the quarter ended November 30, an increase of 16% from the previous quarter. In addition, federal regulators have expanded the qualification of Pfizer vaccines to children between 5 and 12 years of age.

The company conducted 6.5 million COVID-19 tests in the first quarter, which ended before the omicron variant of the virus caused a spike in the number of U.S. cases and increased demand for testing.

Compared with the previous fiscal quarter, sales of Walgreens’ established US stores soared by more than 10%, which ended before the start of large-scale vaccine distribution. According to a company located outside of Chicago in Deerfield, Illinois, this is the highest level of growth in more than 20 years.

Facing a series of challenges this quarter, Walgreens achieved strong sales growth, including a surge in the theft of lucrative beauty products, which company leaders blamed on organized criminal gangs.

Many illegal activities took place in San Francisco, and Walgreens cited these crimes when closing five stores.

Not a modern healthcare subscriber? Register today.

Like its competitors, this chain of pharmacies is also facing a shortage of workers, which has forced some stores to shorten their pharmacy business hours.

Pharmacists generally stated that they are trying to balance the increased demand for COVID-19 vaccination and testing with all other responsibilities, while also addressing the shortage of these personnel.

Walgreens increased its starting salary and added more workers.

Overall, Walgreens’ revenue in the first fiscal quarter was $3.58 billion.

Adjusted earnings per share were US$1.68, and revenue increased by nearly 8% to US$33.9 billion.

According to FactSet’s data, analysts on average expect earnings per share of $1.36 and revenue of $32.88 billion.

Walgreens Boots Alliance Inc. operates more than 13,000 stores, mainly in the United States and the United Kingdom.

The company’s Boots stores in the UK increased sales by 16%, but said the number of customer visits to these stores is still below pre-pandemic levels.

The epidemic initially destroyed pharmacy sales when it broke out in early 2020, but it has since satisfied the demand for vaccines and tests, prompting more customers to go to pharmacies for help.

Edward Jones analyst John Boylan said in a research report that the sales gains from this craze will eventually fade. When this happens, he said the company will have to rely more on its push for healthcare to achieve long-term growth.

Walgreens, like its main competitor CVS Health, is offering more care options as it seeks to be a stable resource for customers who want to improve their health or control chronic problems.

The company has spent billions of dollars in a partnership with VillageMD to open a primary care facility that works with its pharmacy.

It also invested approximately US$970 million in Shields Health Solutions, a company that has been around for 9 years, helping the health system build and operate specialty pharmacies.

“The entity we are creating here is more than just dispensing medicine,” CEO Rosalind Brewer told analysts on a conference call on Thursday morning.

The company’s stock price fell more than 2% to US$52.63 in early trading on Thursday, while the broader market fell.