Boots UK sales and profits slump as prescription numbers fall

Boots is owned by US-based Walgreens Boots Alliance

THE WHAT? Walgreens Boots Alliance has missed industry expectations for its first quarter earnings, ending 30 November, with shares having fallen more than 5 percent.

But Walgreens shares dropped 5.7% o $55.92 in trading Wednesday - dealing another blow to a stock that wrapped up 2019 as the worst-performing in the Dow Jones Industrial Average.

On Wednesday, a pharmacy chain said net profit in the first quarter fell by nearly 25%, which fell below Wall Street expectations.

"The announcement was made in the company's 'Fiscal 2020 first quarter results", published on 8 January 2020. Walgreens Boots Alliance has a 12-month low of $49.03 and a 12-month high of $74.94. The shares were sold at an average price of $63.16, for a total transaction of $14,801,861.80. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website.

Although it made moves to improve its performance, including the establishment of a group purchasing organization with Kroger and record online sales for Black Friday in the USA and United Kingdom, Walgreens Boots Alliance said sales for the first quarter were soft. Institutional investors and hedge funds own 60.38% of the company's stock.


Excluding items, Walgreens earned $1.37 per share, short of estimates of $1.41. Torch Wealth Management LLC boosted its stake in Walgreens Boots Alliance by 1.0% in the 3rd quarter. Usca Ria LLC now owns 27,587 shares of the pharmacy operator's stock worth $1,526,000 after purchasing an additional 190 shares during the period.

Analysts anticipated, on common, earnings of $1.41 per share on $34.58 billion in income, in keeping with FactSet. Rockland Trust Co. now owns 10,932 shares of the pharmacy operator's stock worth $645,000 after buying an additional 263 shares during the last quarter. Evoke Wealth LLC acquired a new stake in shares of Walgreens Boots Alliance during the 3rd quarter worth $3,106,000. Walgreens Boots Alliance had a net margin of 2.91% and a return on equity of 21.99%. Analysts forecast that Walgreens Boots Alliance Inc will post 5.93 earnings per share for the current year.

Walgreens Boots Alliance is a global leader in retail and wholesale pharmacy, touching millions of lives every day through dispensing and distributing medicines, its convenient retail locations, digital platforms and health and beauty products.

The largest USA drugstore chain posted revenue of $34.34 billion in the period, also missing Street forecasts.

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