Walgreens Boots Alliance Inc ( WBA ) on Tuesday reported second-quarter sales of $38.59 billion, up 4.1% year over year (+4.7% on constant currency), beating the consensus of $38 billion, reflecting sales growth in the U.S. Retail Pharmacy and International segments.

Adjusted operating income was $785 million compared to $900 million a year ago, reflecting lower U.S. retail sales in the current quarter and sale-leaseback gains in the year-ago quarter, partly offset by cost savings within U.S. Retail Pharmacy and growth in U.S. Healthcare.

Adjusted EPS was 63 cents, down from $1.20 a year ago (47.5% decline), beating the consensus of 53 cents, according to data from Benzinga Pro.

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The U.S. Retail Pharmacy segment sales reached $30.4 billion, up 5.3%. Comparable sales increased 8.2%.

Pharmacy sales increased by 8.9%, and comparable pharmacy sales increased by 12.2%, each benefiting from higher branded drug inflation and prescription volume.

Comparable prescriptions increased by 3.4%, and prescriptions excluding immunizations increased by 3.9% compared to a year ago.

Total prescriptions filled in the quarter, including immunizations, increased 1.3% to 309 million.

Retail sales decreased by 5.5%, and comparable retail sales decreased by 2.8% compared with the year-ago quarter, driven by lower sales in discretionary categories, including beauty, seasonal, and general merchandise.

Cough cold flu season negatively impacted retail sales by approximately 45 basis points compared to the year-ago quarter, an improvement compared to the fiscal first quarter.

The U.S. Healthcare segment’s sales were $2.2 billion. VillageMD sales decreased 6.2%, CareCentrix sales increased 6.5%, and Shields sales rose 29.7%.

Guidance: Walgreens Boots Alliance ( WBA ) withdrew its 2025 guidance under the M&A deal with Sycamore Partners. The merger is expected to close in the fourth quarter of calendar year 2025.

In the first quarter of 2025, Walgreens Boots Alliance ( WBA ) maintained fiscal 2025 adjusted EPS guidance of $1.40 – $1.80 versus the consensus of $1.52.

The company expected growth in U.S. Healthcare and International offset by pressure in U.S. Retail Pharmacy, largely driven by weaker retail front end performance.

Price Action: WBA stock is up 1.63% at $10.88 at the last check Tuesday.

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