Walgreens' quarterly profit beats ahead of Sycamore Partners deal close

Reuters

Tue, Apr 8, 2025, 4:07 AM 1 min read

(Reuters) -Walgreens, which is successful the process of being taken backstage by Sycamore Partners, bushed Wall Street estimates for quarterly nett arsenic the pharmacy concatenation relation benefited from a turnaround effort that included closing underperforming stores.

On an adjusted basis, Walgreens earned 63 cents per stock successful the 2nd quarter, compared with the mean expert estimation of 53 cents, according to information compiled by LSEG.

The institution said connected Tuesday it is withdrawing its fiscal 2025 forecast, pending the woody close.

Walgreens successful March agreed to beryllium taken backstage by PE steadfast Sycamore Partners for $10 billion, closing retired astir a period of trading connected nationalist markets for the U.S. pharmacy giant. The institution expects the transaction to adjacent successful the 4th fourth of this year.

Sycamore specializes successful retail and user investments, and has a way grounds of acquiring distressed retailers for nett including brands specified arsenic Staples, Talbots and Nine West.

Walgreens' retail concern has struggled with inflation-driven weakness successful user spending and its pharmacy cognition has faced debased reimbursement rates for filing prescriptions.

Its U.S. retail pharmacy portion reported income of $30.38 cardinal for the 4th ended February 28, beating estimates of $29.67 billion.

The pharmacy retailer appointed healthcare manufacture seasoned Tim Wentworth arsenic CEO successful 2023 aft erstwhile apical brag Rosalind Brewer abruptly stepped down.

Since taking connected the reins, Wentworth unveiled a bid of changes including the removal of aggregate mid-level executives, a $1 cardinal cost-cutting workout and plans to adjacent 1,200 stores.

(Reporting by Sneha S K and Christy Santhosh successful Bengaluru; Editing by Shounak Dasgupta)