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$WBA appointed Sebastian James as SVP and President and Managing Director of Boots. He also will be joining the company in the summer of 2018 and taking up his new role at the beginning of the new fiscal year on Sept. 1. Elizabeth Fagan, who has led Boots since June 2016, will become new Non-Executive Chairman of Boots in the new fiscal year.
$WBA stated that its beauty differentiation stores performed stronger in 1Q18 than in prior quarters. Additionally, the company's beauty category sales in these stores continued to be markedly better than in other stores, resulting in higher retail gross margin and higher comparable retail sales.
$WBA's all three segments reported an increase in sales in 1Q18 with Retail Pharmacy USA segment's pharmacy sales, which accounts for 72.4% of the division's sales, increasing 14.1%, driven by high prescription volumes. Retail Pharmacy International's sales rose 4.1% to $3.1Bil, while Pharmaceutical Wholesale sales jumped 5.6% to $5.7Bil.
$WBA raised the lower end of its FY18 guidance by $0.05 per share and now expects adjusted diluted net EPS in the range of $5.45-5.70. This guidance does not take into account any impact from the recent U.S. tax legislation and assumes current exchange rates for the rest of the fiscal year.
Pharmacy chain $WBA posted a 22.1% slump in its 1Q18 profit, bruised by impairment of the company's equity method investment in Guangzhou Pharmaceuticals Corporation. Profit slumped to $821MM or $0.81 per share from $1.05Bil or $0.97 a year earlier. Sales, however, jumped 7.85% to $30.7Bil. On an adjusted basis, $WBA earned $1.28 per share.
$WBA agreed with China National Accord Medicines Corp. to become an investor in its subsidiary Sinopharm Holding Guoda Drugstores Co., which operates and franchises retail pharmacies across China. $WBA's bid met all the requirements set by the seller to buy 40% minority stake in GuoDa through a capital increase worth around $416MM.
$FDX said its package pickup and drop-off services are now available at more than 7,500 $WBA locations in all 50 US states. The Walgreens rollout is part of the nationwide expansion of FedEx OnSite, a network of retail locations offering FedEx pick up and drop off services, including the ability to hold packages for up to five business days.
$WBA's Retail Pharmacy and Pharmaceutical Wholesale segments reported increase in sales, helped by higher prescription volumes. Retail Pharmacy International segment, however, saw a decrease in its sales, influenced by currency translation. For FY18, the company expects adjusted diluted net earnings of $5.40-5.70 per share.
$WBA, the second largest pharmacy store chain in the US posted a 22% fall in profit to $802MM or $0.76 per share, hurt by a $300MM fee paid to $RAD post their failed merger attempt. Conversely, revenue rose 5.2% to $30.1Bil, driven by expansion of $WBA's mail service through its specialty pharma & mail services company AllianceRx Walgreens Prime.
In 2Q18, $RAD opened 1 store, relocated 1 store, remodeled 54 stores and expanded 1 store, bringing the total number of wellness stores chainwide to 2,532. The company, whose merger deal with $WBA was terminated, closed 17 stores, resulting in a total store count of 4,507 at the end of the second quarter.
Under the amended and restated asset purchase agreement with $RAD, $WBA does not expect the transaction to have a significant impact to its adjusted EPS in FY17. $WBA also expects to realize annual synergies from the transaction of more than $300MM, which are expected to be fully realized within four years of the initial closing of the transaction.