DEERFIELD BEACH, Fla. — Walgreens’ fiscal fourth quarter net income fell 55% compared with a year ago when the drugstore operator recorded a big business sale gain. However, its adjusted earnings still beat analysts’ expectations.
Walgreen earned $353 million for the quarter ended Aug. 31, compared with $792 million a year ago. On an adjusted basis, Walgreen earned $553 million versus $599 million a year earlier. Adjusted earnings excluded acquisition-related costs and costs related to inventory.
Revenue fell 5% to $17.1 billion, from $18 billion a year ago. The chain was impacted by a split with pharmacy benefits manager Express Scripts Holding Co. that shifted customers away from its stores. The companies have since agreed to a new contract, but it didn't start until Sept. 15.
“This was a challenging, but very important year for Walgreens, and we finished with a tough quarter. While we controlled costs and generated strong cash flow in the fourth quarter,