Witness a person riding past a Walgreens truck, owned by the Walgreens Boots Alliance, Inc., in the bustling streets of Manhattan, New York City, U.S., on November 26, 2021. The image was captured by Andrew Kelly and shared by Reuters.
Walgreens has recently reported fiscal second-quarter sales that surpassed Wall Street’s expectations. However, the company has adjusted its full-year earnings outlook, citing a “challenging” retail environment in the U.S. as a contributing factor.
Despite beating sales expectations, the company posted a significant net loss for the quarter. This was largely due to a nearly $6 billion charge related to the decline in value of its investment in primary-care provider VillageMD. Walgreens has taken steps to address this, including the closure of 140 VillageMD clinics. The company views VillageMD as crucial to its transformation from a major drugstore chain into a large health-care company.
Despite the financial setback, Walgreens remains optimistic about its future. Manmohan Mahajan, Walgreens global CFO, stated that the VillageMD charge “will not significantly impact our financial position or our ability to invest across businesses going forward.”
2024-03-28 09:52:26
Link from www.cnbc.com