Sales at Boots have risen in the last quarter, according to the latest figures. Despite this, parent company Walgreens Boots Alliance (WBA) has lowered its profit forecast and confirmed a series of store closures to be carried out in the US.
Boots Profits Grow But US Store Closures Anticipated
The improved sales figure came across Boots’ pharmacy and retail activity until the end of May. Its overall sales growth slowed to 1.6%, with the store closures carried out in the last year said to be to blame. The brand now has 1,900 sites after 300 shops were closed recently.
WBA’s next move is to close more of the stores in the US that are underperforming, with the company carrying out a strategic review to identify the stores that are to go on the list. Earnings per share guidance has been cut for the current financial year ending in August, with the difficult retail environment in the US given as the main factor in this decision.
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The group’s overall sales rose by 2.6% to $36.4bn (£28.8bn) in the most recent quarter. Good US pharmacy sales failed to overcome the disappointing figures caused by the ongoing American retail sector problems.
Retail sales in the UK rose by 6% year on year, with increased footfall in key airport stores helping to increase the in-store sales numbers. Digital sales figure rose by 13.8%, with the improved Boots app helping to drive online business.
Sebastian James, the Boots CEO for the UK and Republic of Ireland, said:
I am pleased to see our positive momentum continue across the whole business, with both retail and healthcare increasing sales and a 13th consecutive quarter of market share growth.
