Jul 9, 2020 - Health

Walgreens tallies $1.7 billion loss from coronavirus outbreak

Bob Herman

A social distancing sign in a Walgreens pharmacy. — Walgreens lost $1.7 billion in its most recent quarter. Photo: Jeffrey Greenberg/Education Images/Universal Images Group via Getty Images

Walgreens lost $1.7 billion in the three-month stretch that ended May 31, as the coronavirus outbreak kept shoppers at home and raised stores' costs.

Why it matters: The pandemic and global stay-at-home orders consumed almost all of those three months. Walgreens will now cut 7% of its workforce, mostly in the United Kingdom.

By the numbers: Walgreens said the coronavirus eliminated at least $700 million in sales and led to higher employee and administrative costs to account for social distancing and cleaning stores.

However, most of the lost revenue occurred in pharmacies in the U.K., where stay-at-home orders were stricter. U.S. states were already reopening during the latter parts of Walgreens' quarter.

The big picture: Prescriptions declined heavily because patients stopped going to their doctors and because hospitals were admitted fewer patients.

But Walgreens still reported higher U.S. prescription sales due to higher drug prices.

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Walgreens tallies $1.7 billion loss from coronavirus outbreak

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