10:43 AM EDT, 06/26/2025 (MT Newswires) -- Walgreens Boots Alliance ( WBA ) reported fiscal third-quarter results above analysts' estimates, even though the drugstore chain's financials were weighed down by weakness in US retail sales.

Adjusted earnings fell to $0.38 a share for the quarter ended May from $0.63 a year before, but came in ahead of the FactSet-polled consensus of $0.33.

Declines in retail sales in the US and equity earnings from drug distributor Cencora (COR) contributed to the annual drop in EPS, partially offset by cost savings in the US retail pharmacy division, Walgreens said.

Consolidated revenue advanced 7.2% to $38.99 billion in the quarter, topping analysts' view for $36.84 billion. Walgreens' shares rose 1.1% in Thursday trade.

Revenue in the broader US retail pharmacy segment improved 7.8% to $30.72 billion in the quarter, while comparable sales climbed 10%. Same-store pharmacy sales added 15%, though comparable retail sales fell 2.4% due to weakness in grocery and household, health and wellness, and beauty, Walgreens said.

"Third-quarter results reflect continued improvement in our US healthcare segment and benefits from our cost savings initiatives, while we continued to see weakness in our US front-end sales," Chief Executive Tim Wentworth said in a statement. "We remain focused on our turnaround plan, which will require time, disciplined focus and a balanced approach to manage future cash needs with investments necessary to navigate an evolving pharmacy and retail environment."

In March, Walgreens agreed to be purchased and taken private by an affiliate of Sycamore Partners in a deal worth up to $23.7 billion. The transaction, which requires approval from regulators and shareholders, is expected to complete in the third or fourth quarter of this calendar year, Walgreens said Thursday.

As a result of the pending deal, Walgreens said it will not hold a conference call to discuss the results and not provide guidance.

International sales advanced to $6.17 billion in the third quarter from $5.73 billion in the prior-year period. The US healthcare division's revenue edged down to $2.1 billion from $2.13 billion, according to the company.

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