Walgreens reported a loss of $415 million on the higher tab of cost management

Walgreens Boots Alliance reported a quarterly loss of $415 million quarterly loss due to charges related to its United Kingdom operation and higher expenses from a global “cost management program”.

The largest drugstore chain in the US which is amid a major expansion of healthcare services including rolling new doctor-staffed clinics is suffering declining sales in the country and partly in the UK due to lower demand for COVID-19 services. Walgreen had a profit of $627 million in last year's quarter but this year company swung to a $415 million loss in the fiscal 4th quarter. If it is seen on an operation basis the loss is even greater.

Though, the demand for COVID-related vaccines and diagnostics is still there, but not nearly like the levels of the pandemic. Sales fell from $34.3 billion to more than 5% to $32.4 billion in the year-ago quarter.

The need to cost cut was also necessary for Walgreens as it was increasingly spending on stores and new systems in the competitive retail healthcare space that includes rivals like Walmart, CVS Health, and Amazon. Looking ahead, Walgreens raised its sales guidance for fiscal 2023. The drugstore projects adjusted earnings of $4.45 to $4.65 per share.