Walgreens Boots Alliance Inc. reported its financial results for the third quarter of fiscal 2025, ending May 31, 2025. The company experienced a 7.2% increase in sales year-over-year, reaching $39.0 billion, with a growth of 6.9% on a constant currency basis. However, the company reported a third-quarter net loss per share of $0.20, compared to earnings per share of $0.40 in the same quarter of the previous year. The adjusted earnings per share for the third quarter stood at $0.38, a decline from the adjusted EPS of $0.63 recorded in the previous year. This decrease was mainly attributed to a higher adjusted effective tax rate, increased incentive accruals, reduced U.S. retail sales, and lower equity earnings in Cencora. Cost savings within the U.S. Retail Pharmacy partially offset these factors. Operating income for the third quarter was $53 million, a decrease from $111 million in the previous year, influenced by a non-cash impairment charge related to certain long-lived assets. Adjusted operating income was $558 million, down from $613 million in the prior year. The company has withdrawn its fiscal 2025 guidance, following the pending acquisition by entities affiliated with Sycamore Partners. Walgreens Boots Alliance continues to focus on a turnaround plan, addressing U.S. Healthcare segment improvements and cost-saving initiatives, while managing the challenges in U.S. front-end sales.
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