Walgreens tallies $1.7 billion loss from coronavirus outbreak
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.