Walgreens Reports $2.9B Loss Amid Sycamore Partners Take-Private Deal Nears

Walgreens reported a second-quarter revenue of $38.6 billion, a 4.1% year-over-year increase, while shrinking its losses to $2.85 billion, down from $5.9 billion a year earlier. The company cited improvements in its U.S. healthcare segment and cost-cutting measures as contributors to the better-than-expected earnings, despite facing challenges in retail sales, which fell due to lower discretionary spending and a less severe cough-cold-flu season. Walgreens is currently in the process of being taken private by Sycamore Partners in a $10 billion deal, expected to close in the fourth quarter of this year, and it has withdrawn its financial guidance for 2025 as a result. CEO Tim Wentworth emphasized that the company remains in the early stages of a turnaround plan, which includes managing costs while navigating a changing pharmacy landscape. The company’s adjusted earnings of 63 cents per share surpassed Wall Street expectations of 53 cents. Despite the positive earnings report, Walgreens continues to grapple with significant legal settlements and the impact of impairment charges related to its investments.