As Walgreens Boots progresses on its new plan to acquire 2,186 Rite Aid stores, the company reported net earnings and sales gains in its third quarter.
For the third quarter ended May 31, Walgreens Boots posted net earnings of $1.16 billion, or $1.07 per diluted share, versus $1.1 billion, or $1.01 per diluted share, in the period a year earlier. Adjusted net earnings were $1.44 billion, or $1.33 per diluted share, versus $1.29 billion, or $1.18 per diluted share, in the year-previous quarter.
Walgreens Boots topped a MarketBeat published analyst average estimate by three cents per diluted share.
Net sales were $30.12 billion versus $29.5 billion in the quarter a year prior. Retail pharmacy USA sales gained 6.3% to $22.5 billion in the quarter year over year. Comparable store sales increased 3.7% compared with the same quarter a year previous. Retail sales independent of pharmacy operations decreased 1.8% in the quarter versus the period a year prior. Comparable retail sales slipped 0.4% in the quarter year over year, with declines in the consumables and general merchandise category and in the personal care category partially offset by growth in the health, wellness and beauty categories.
With its merger acquisition of Rite Aid scrapped, Walgreens Boots recently entered a new agreement with Rite Aid Corp. under which the company will purchase 2,186 stores, three distribution centers and related inventory from Rite Aid. Walgreens will pay $5.18 billion in cash and assume related real estate leases and certain limited store-related liabilities as well as grant Rite Aid an option, exercisable through May 2019 and subject to certain conditions, to become a member of Walgreens Boots Alliance’s group purchasing organization.
