In: Finance
Ans ) Walgreens is an American company and it has second largest pharmacy stores. It specialises in health and fitness products.Eyeing for international expansion the company aquired 55% shares of Alliance boots and the two companies merged to form a new company name Walgreens Boots Alliance inc. The lead to Walgreens becomming the subsidiary of Walgreens Boots Alliance which trades on NASDAQ with symbol WBA. As of now the company has a diverse portfolio of companies making , skin care , beauty, paper, eatables etc. As on March 2020 Walgreens sales goes op by 26 % because of the fear of lockdown imposed by the US government as a result of COVID -19.The last days of the same month the sales declines.There is a significant decline in the sales of the beauty products.But the management is confident that the downfall nin sale will recover post lockdown as the company supplies the essential items like medicine and health care products. Walgreens beat the wall street expectations for the fiscal second quarter. The stock rose to the intraday high to $ 41.39 and the revenue of $ 35.82 billion with earning per share $1.52. The company retail pharmacy business grows by 3.8% to $ 27.2 billion as compared with the previous year.The recent changes implemented by the walgreens is the focus on cost cutting and it eyed on a reduction in cost of around $ 1.8 billion till financial year 2022 for that the strategy of closing non profitable stores are layoff is implemented. Walgreen is also eying for new innovative business model and it has decided to continue previous dividend payout model along with the buyback of shares as its strategy. Apart from that it has modified its stores to enable social distancing in the current crisis of COVID -19. All the above measures will help to boost efficiency in operation of walgreens and that will results in sound financial results.