Walgreens freezes share buybacks after posting $1.7 billion 3rd-quarter loss

• Walgreens halted its share buyback program and said it plans to cut 4,000 jobs after reporting worse-than-expected third-quarter figures.
• The drugstore giant lost $1.95 per share over the period, or $1.71 billion overall.
• The company's Boots UK division saw same-store sales nosedive 48% over the period as quarantine orders "compelled consumers to consolidate shopping into grocers," Walgreens said.
• The pharmacy chain's shares traded as much as 5.1% lower early Thursday on the news.
• Watch Walgreens trade live here.

Walgreens took measures to pad its bottom line on Thursday after the coronavirus tore into third-quarter profits.

The pharmacy chain reported a net loss of $1.95 per share over the three-month period, or a total net loss of $1.71 billion. Adjusted earnings per share reached 83 cents cents, still below the $1.19 per share expected by analysts, according to Bloomberg.

Walgreens will pause its share repurchase program and cut 4,000 jobs in response to the profit collapse. The cuts affect roughly 7% of the company's workforce.

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Walgreens stock tumbled as much as 5.1% in early trading. Shares closed at $42.29 each on Wednesday, down about 28% year-t0-date.

"Prior to the pandemic our financial performance for fiscal 2020 was on track with our expectations. However, this unprecedented global crisis led to a loss in the quarter as stay-at-home orders affected all of our markets," CEO Stefano Pessina said in a statement.

Prescription fillings fell 1.3% year-over-year, the drugstore chain said, attributing the decline to fewer hospital visits amid statewide lockdowns.

US same-store sales increased 3% over the period. Strong demand for vitamins and personal protective equipment drove a 9% jump in health and wellness sales. Personal care sales gained 5%. Weakened demand for discretionary products pushed beauty item sales down 9%.

International performance fared worse overall. Sales slid 31.5% through the quarter to $1.9 billion.

Underperformance at the company's Boots UK locations counted for much of the hit. Comparable sales dove 48% as quarantine orders "compelled consumers to consolidate shopping into grocers," Walgreens said. Operating losses for its international pharmacies reached $2.2 billion, mostly fueled by a $2 billion impairment charge.

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