Boots profits slide as owner Walgreens cautions on coronavirus impact

Boots Liverpool

Boots has suffered a slump in profit during the first half of its financial year, following a fall in sales and increased technology investments.

The health and beauty retailer’s adjusted operating income tumbled 29.1% to $276m. Sales dropped 2.2% to $5.8bn, while margins slipped 180bps to 4.8%.

Parent company Walgreens Boots Alliance attributed the erosion of its bottom line to lower sales, the impact of bonus payments and its investments in technology.

Walgreens said that, amid the ongoing coronavirus crisis, it was “proactively deferring certain activities”, including the rollout of new beauty halls in Boots’ UK stores.

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