The Colorado Springs Gazette final

Walgreens vaccine demand wanes

Reuters

Walgreens on Thursday maintained its full-year earnings forecast due to declining COVID vaccinations, even as the drugstore retailer beat quarterly estimates on the back of strength in its U.k.based Boots business.

The company said it still expects low single-digit growth in its adjusted earnings for the year and warned on costs related to investments in labor and in its new consumer health business.

“Given the uncertainty of the COVID environment, we are not surprised to see that management did not raise FY22 guidance despite the beat,” Evercore ISI analyst Elizabeth Anderson said.

Walgreens has benefited from gains from administering COVID-19 vaccines to cushion the impact of losses from low prescription volumes and over-the-counter sales of health and wellness products in recent quarters due to the pandemic.

The company had put its Boots business up for sale in January as it renewed its focus on domestic health care.

But this week, Walgreens said it would scrap the plan to sell the business as no buyer came up with an adequate offer for the 173-year old chain.

Walgreens will continue to look at alternatives for strategic divestments, CEO Rosalind Brewer said Thursday.

BUSINESS

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2022-07-01T07:00:00.0000000Z

2022-07-01T07:00:00.0000000Z

https://daily.gazette.com/article/281925956707657

The Gazette, Colorado Springs