Boots sales strengthen as Walgreens Boots Alliance raises guidance

WBA reported sales reached $33.9bn (£25bn) in the quarter ending November 30, marking a growth of 7.8% from the same quarter last year.

Its international retail pharmacy operations – which includes Boots – reported a  sales increase of 35.8% to $5.8bn (£4.3bn).

It reported that its performance, driven by vaccinations and testing, surpassed expectations, adding that it will raise its financial guidance for 2022.

Boots’ own sales also rose 16.3% year on year in the quarter as high street footfall continued to recover. Boots also noted a 12% growth in basket size compared with pre-pandemic levels.

Pharmacy sales also increased by 8.8% during the period, while online sales almost doubled in the quarter compared with the same period pre-pandemic. Overall online sales now account for 15% of total retail sales. 

Boots also reported growth in its market share, which the retailer said was driven by its performance in beauty. The retailer launched 27 beauty halls in regional locations during the period. 

The results come following speculation that WBA is considering a sale of the health and beauty powerhouse.

It is also understood that Boots had a strong Christmas performance despite challenging trading conditions presented by the rise of the Omicron variant.

Boots managing director Sebastian James said: “Boots delivered another strong performance this quarter with both retail and pharmacy sales continuing to increase year on year, along with very encouraging market share growth.

“Our transformation continues as planned with investment, particularly in digital, our beauty portfolio and healthcare services, aiding a fast-paced recovery from the pandemic.

“This is also driving strong market share gains from both traditional and new competitors. Digital sales are almost double what they were two years ago.”