Walgreens Boots Alliance reported a $245 million operating loss in 2025's first fiscal quarters, the three months ending Nov. 30.
Here are 10 things for ASCs to know:
1. The $245 million operating loss marks a significant rise from the $39 million operating loss recorded in the same quarter last year.
2. "Our first quarter results reflect our disciplined execution against our 2025 priorities: stabilizing the retail pharmacy by optimizing our footprint, controlling operating costs, improving cash flow and continuing to address reimbursement models," CEO Tim Wentworth said in a Jan. 10 news release. "While our turnaround will take time, our early progress reinforces our belief in a sustainable, retail pharmacy-led operating model."
3. According to the release, higher costs from Walgreens' footprint optimization program and lower U.S. retail sales contributed to the increased losses.
4. Adjusted operating income fell to $593 million from $687 million, reflecting reduced sales and prior-year sale-leaseback gains, partially offset by cost savings and growth in Walgreens' U.S. healthcare segment.
5. Net loss climbed to $265 million from $67 million year over year, with adjusted net earnings dropping 23% to $440 million due to lower adjusted operating income.
6. First-quarter sales increased 7.5% year over year to $39.5 billion, or 6.9% on a constant currency basis, with growth across all segments. The U.S. healthcare segment posted $2.2 billion in first-quarter sales, driven by VillageMD (up 9%), CareCentrix (up 16%), and Shields (up 30%).
7. Walgreens Boots Alliance is reportedly considering selling itself to private equity firm Sycamore Partners and becoming private, The Wall Street Journal reported Dec. 10.
8. Walgreens plans to close 1,200 locations over the next three years, including 500 closures in 2025. This initiative is expected to improve adjusted earnings and free cash flow. These closures are part of a broader cost-cutting strategy that also includes shutting down 300 stores under a previous plan.
9. In the prior quarter, Walgreens posted a $978 million operating loss, a 117% increase year over year, with net losses jumping to $3 billion compared to $180 million the year before.
10. Walgreens is evaluating its strategy for VillageMD, a primary care provider in which it acquired a majority stake through a $5.2 billion deal in 2021. Options under consideration include a potential sale of all or part of its stake and restructuring alternatives, according to an Aug. 7 SEC filing.