morning, our our the good for started and challenging by against despite financial Eric, Thanks, priorities progress fiscal consumer. everyone. strategic We've the year and making backdrop
Services retail as respond changing strength and by driven in we work cost our in behavior. front-end period initiatives business operating Our the weakness earnings consumer our Pharmacy U.S. offsetting in relative to to businesses, were management
we outcomes in pharmacy, market achieved script maintained share. the this U.S. Among we quarter
to combination continued and our business returns, cost revenue show expectations a growth of Healthcare and segment control. somewhat contributed strong above International and U.S. Our
longer-term our opportunities that turnaround. on to we Importantly, consider essential to the progress we started
year, executing At the And X these are we targets. quarter areas end XXXX, current into long-term we identified of against of fiscal focus. financial X the
walking spend Let me through each. a few minutes
cornerstone begun are The and Pharmacy We've Optimization turnaround across we of our Program plan. stabilizing Retail U.S. the with several of Footprint business, key the this early and showed our pleased planks results. progress is
exceeding currently retention retained historical the of have team script and majority members. We're pharmacy and rates store
We closures from first quarter expect of store to level. significantly the ramp our pace the
X,XXX a have As reminder, lot locations the closures of we decade. past with about having experience a store closed over
dedicated on have of end the upon has the for store results. next XXX That a process execution this the stepped-up confidence to focus a this XXXX. at said, approximately degree the assembled process high point, to we pace exclusively to end-to-end the next sequenced the handle of of This team years, through And improve already in team we've X closures. historical our
Naturally, we comparable our sales XXX support store by close scripts comparable footprint front-end basis this to we stores points those points. and approximately expect basis future in by pharmacy approximately see to year stronger slated XXX fleet performance. retained Currently, outperforming our
future initiatives footprint, execute longer-term consumer on to and merchandising our in we within even have engagement clear, be To grow. to order our
However, a be our will for the company. view this our one smaller data supports healthier that footprint
patients with the schedule and new we're labor Also our and enterprise, members. turnaround month, our this launching our XXX to customers, experience. the logic allocate in optimization deliver better the to in-store forecast, is employee about experience way critical retail team Across scheduling Beginning are our we for stores we on refining stores.
excited this initial chain feedback and to labor this The We've pilot later solution patterns demand based logic are preferences. roll to year. store-specific the deploys availability positive from while also accounting for on and member team our received out
operations. are also requires pharmacy operating in our so we pharmacy superb steps improve leverage, Winning taking to
team at remember to start engineer in This optimize year, patient may productivity and successful rollout fulfillment and has results. talked micro better experience. last the our centers a about of we member of our pause work You yielded
currently these are by while to was our year-on-year, XX%. XX% about care on from role shipped improvements patient the clinical pharmacists These services centers MFCs provide. stores. and more fill [indiscernible] volumes And up serve Our allow critical down X,XXX time expanding spend they
more BXB able For example, MFCs more were customers. payers and our stores medication therapy complete by supported patients, administer to vaccines for management and
our further per across forward, basis. costs work lower do operating Looking expand more there's and script our to on still to national a this footprint
reframe improving partners services. to addition discussion fair our the on model, value focus In operating with our for priority to to reimbursement been our has key a
these As completed an now contract XXXX, of the the for update to conversations have of and has nature last all quarter, evolved. negotiations calendar we
dynamics cost We've our and to with our adjusting align out all Medicare for negotiations reimbursement rebalancing contract generics in needs our high-cost better had success such and plans as the of of to and brands customers categories evolving with response Medicaid drugs, in new commercial, goods. and in carving
about also are discussions and beyond models. We promoting being for additional compensated payment services alternative dispensing expanding
needs there's done next more several over the to Notwithstanding years. that progress, much our still be
Our communities across possible, our goal reimbursed as care health can dependent is being country. we as fairly a so to this serve the presence is on provider maintain as many but that patients and
drug a in It is become procurement. also our market goal leader to
Cencora. procuring to drugs partners with working competitive and price at engage the continue to ensure [indiscernible] are We at our that most
We a incremental progress discussions as more towards these work acceptable are solution. making in long-term we
third challenging business. priority, more to This our been deterioration of discretionary has turnaround our in consumer made the the retail persistent consumer spending. by now Turning
are rates. Our seeing pressure under consumer continued and remains value-seeking and interest from we inflation accumulated higher behavior. channel-shifting And
associated our decline with to half of the with warmer reduced about and results first impacted versus our the those quarter baskets incidences year. retail contributing trips respiratory season last Additionally,
broader retail conditions in As we repositioning a real we're to look effectuate to responding these time. business, our of
over it's years. recent Some of have the our in X our changes to is like store approach been inventory and been targeted in rate managing our actions successful, in-stock highest
item store to for right We to the the create are also we right assortment. customer-centric the a tools use modernizing have in assortment optimization
We women's and as wellness, in began products growth our new nutrition. foods part well-being to of strategy focused categories health super as such a introduce and specifically sports
also own pursue is XX.X%. penetration, brand to XX the in We quarter first which points to up basis continue
this and introduced year, introducing XXX targeted into products approximately in we brand have first the quarter. XX Coming own about new
it and relates consumer As our as meet omnichannel to the evolving delivery leveraging care further of our experience, capabilities home to preferences. we are evolution consumer such virtual
and prescription offered delivery for has X same-day approximately X Walgreens more stores. within delivery XXX than from hours years nationwide
states virtual XX We also available U.S. offer population. to XX% care the in of nearly
to with in-store, our and touch as online. drive-thru of points customers, expect retail component continue many we home view and health it including to delivery grow across While care, one we
we summary, elements of are our In retail progressing strategy. a of number
do seeing are here. still we have work substantial we shoots, While to early green
our assets. noncore Turning to
We process Village while are ]. for evaluate sale the underway to best the Medical CDMD [ continuing options Summit with for
by of Jim care health Murray. the leadership encouraged CEO, veteran, new are We
intent ultimate exit improve our balance And we clear, reduce remain any be sheet. net redeploying of To debt to the unchanged. our and committed to to health is our proceeds
our context leasebacks. Importantly, income, free cash flow of dividend. of this with excluding priority sale and for in payments, the flow improved positive adjusted us and cash key impact we quarter of remains current litigation, opioid a debt operating noncash expenditures generation decreased the Long-term capital higher
cash action on require will progress flow meaningful and focus. Continued
our delivering ahead quarter. shown while successful And In in of lot of conclusion, progress work turnaround. underpins this we've the we on have over belief us, progress past our a a priorities
turn I results. financial review to will Manmohan it now over to our
