Walgreens Q2 profit rises, despite unexpected drop in sales

Deerfield, Ill.-based Walgreens Boots Alliance's profit increased in the second quarter of fiscal year 2017, despite seeing a decline in sales due to challenges in its international business.

The company's retail sales in the U.S. were strong in the second quarter, while international sales struggled. Walgreens recorded a 1.5 percent year-over-year increase in U.S. retail pharmacy sales, while reporting an unexpected 14.5 percent drop in international sales. The company said the decline was due to the strong U.S. dollar reducing the value of sales outside of the country and challenging market conditions in continental Europe. The company's wholesale business, which also has operations in Europe, tumbled 10.6 percent year over year to $5 billion in the second quarter of FY 2107.

Walgreens ended the second quarter with net income of $1.06 billion, up from $930 million in the same period of the year prior.

"Our results this quarter were in line with our expectations despite some challenging conditions we faced in a number of markets," said Walgreens Executive Vice Chairman and CEO Stefano Pessina in an earnings release.

Mr. Pessina said the company is still trying to gain regulatory approval of the pending acquisition of Camp Hill, Pa.-based Rite Aid, a deal that was announced in October 2015. On a call with investors Wednesday, Mr. Pessina said he expects the deal to be approved in coming weeks, according to The Wall Street Journal. He said the transaction is still expected to close by the end of July.

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