Walgreens narrows full-year profit forecast, takes $5.8-billion impairment

By Thomson Reuters Mar 28, 2024 | 6:10 AM

(Reuters) -Walgreen Boots Alliance cut the higher end of its profit forecast for fiscal-year 2024 on Thursday, citing economic challenges for its retail operations, and took a $5.8-billion impairment related to its VillageMD business.

Walgreens has been grappling with decreased spending on personal care and beauty products by inflation-weary consumers, which has exacerbated the hit from waning demand for its COVID-19 vaccines and testing kits.

On an adjusted basis, Walgreens reported earnings of $1.20 per share for the quarter, compared with analysts’ average estimate of 82 cents per share, according to LSEG data.

The company now expects an adjusted profit of $3.20 to $3.35 per share for its financial year ending Aug. 31, compared to the $3.20 to $3.50 per share range it gave in January.

(Reporting by Puyaan Singh and Leroy Leo in Bengaluru; Editing by Pooja Desai)