The pharmacy retailer’s net income totaled $677 million, or 75 cents per share, down from $1.51 billion, or $1.55 per share, last year. Adjusted EPS was $1.43, ahead of the FactSet consensus for $1.41. WBA also reported sales of $34 billion were up from $33.4 billion last year and ahead of the FactSet guidance for $33.9 billion. Walgreens raised its annual cost savings target to more than $1.8 billion by fiscal 2022, versus a previous target of $1.5 billion.
Walgreens attributed the drop in earnings largely to charges related to its cost-cutting efforts. The company recorded $212 million in transformational cost-management charges in the quarter. Walgreen’s estimates it will save $1.5 billion in annual cost savings by fiscal 2022.
Walgreens has also announced a collaboration with Jenny Craig to bring health and weight loss management services to customers across the United States. With a focus on addressing weight and health management, Jenny Craig and Walgreens will open 100 Jenny Craig at Walgreens locations nationwide in January 2020. The Jenny Craig at Walgreens locations will offer Jenny Craig’s clinically proven program featuring private one-on-one consultations, a customized menu plan and meal delivery.
This collaboration marks the first time Jenny Craig will offer its services at a national drugstore chain in the U.S. and the first time customers will be able to receive personalized health and weight loss management services at their local Walgreens.
“Jenny Craig has a long standing history of changing lives through personal one-on-one support and lifestyle management. We found Jenny Craig to be a strong fit with our shared mission to provide trusted, proven, and personalized care,” said Jim OConor, senior vice president, neighborhood health destination, Walgreens. “Jenny Craig at Walgreens will give customers the opportunity to interact face-to-face with Jenny Craig consultants, just as our patients have experienced for over a century with our pharmacists.”
The 100 Jenny Craig at Walgreens will open in 20 states across the country in markets including Dallas, Houston, Philadelphia, and Phoenix, among others. After these locations open in January, the companies will begin to explore other potential in-store and digital initiatives.
“Jenny Craig and Walgreens are a natural fit with both companies focused on making health services—including weight loss—easily accessible, effective, personal and valuable to customers,” said Monty Sharma, CEO and president of Jenny Craig. “The launch of Jenny Craig at Walgreens will expand our ability to attract even more consumers across the country and provide them with our scientifically-proven and innovative offering that includes in-person personalized coaching, customized and prepared meal plans with convenient in-home delivery of our delicious foods.”
As Walgreens continues to develop neighborhood health destinations, Jenny Craig is the latest addition to the broad portfolio of affordable health care services available at select Walgreens. These services include diagnostic lab testing, primary care, urgent care, dental and optical.