Boots shines as WBA releases Q3 results
Walgreens Boots Alliance (WBA) has released its Q3 results and reported a net loss of $175 million compared to net earnings of $344 million this time last year but with adjusted net earnings of $334 million, down from $545 million. The company saw a higher adjusted effective tax rate and lower US retail sales, among other causes. But third-quarter sales increased 7.2% year-on-year to $39 billion.
WBA, which is to be acquired by entities affiliated with Sycamore Partners, owns the UK's dominant health & beauty retailer Boots and that appears to be progressing strongly.
The firm's International segment had third-quarter sales of $6.2 billion, an increase of 7.8%, including a favourable currency impact of 1.9%. Sales increased 5.9% on a constant currency basis, with the German wholesale business growing 6.8% and Boots UK sales growing 5%.
Boots UK comparable retail sales increased 6% on a constant currency basis and sales through its webstore rose 18.7% or 14.8% on a constant currency basis, representing 17% of Boots total retail sales.
International adjusted operating income increased 22% to $214 million, an increase of 20.2% on a constant currency basis compared with the year-ago quarter, reflecting the strong retail performance at Boots.
Tash Van Boxel, Retail Analyst at GlobalData, said that Boots' focus on refreshing its offer and use of initiatives to extend its market reach resulted in a 'robust' set of results.
As far as the online success is concerned she said that the recent launch of the AI SmartSkin Checker, which helps identify and advise on over 70 skin conditions, is available through Boots' Online Doctor and has helped bolster e-traffic. 'Consumers opt for this fast and free skin diagnosis and are more likely to purchase recommended products directly via the app afterwards,' she explained.
And she added: 'The health & beauty market leader's focus this quarter has been on 'wellness', with its Beauty Box launching in May in partnership with Women's Health. Boots has expanded its wellness ranges, with 18 third-party brands launching in the lead up to Global Wellness Day, including TikTok favourites, Humantra and Selfish. Almost three-quarters of consumers (71.5%) say they are more concerned with their health and wellbeing this year compared with last, according to GlobalData's June 2025 monthly survey. With Boots' new brand launches, Boots is successfully responding to consumers' changing health & beauty shopping behaviour.'
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