Walgreens Boots Alliance has beaten analyst estimates, reporting larger than expected quarterly profit and sales for the second quarter of fiscal 2018, ended February 28.

The drugstore giant saw sales grow 12.1 percent to US$33 billion while net earnings were up 27.3 percent to US$1.3 billion. As a result, the company has raised the lower and upper ends of its guidance and now anticipates fiscal 2018 adjusted diluted earnings per share of US$5.85 to US$6.05.

Executive Vice Chairman and CEO Stefano Pessina said, “Our growth strategy of increasing and consolidating volume, differentiating ourselves through value and quality of service, and controlling costs is bearing fruit across our businesses. This is reflected in another good set of financial results in which we delivered the highest sales growth in eight quarters, as well as strong cash generation and record US pharmacy market share. We expect to continue to grow, in part through the recent acquisition of stores from Rite Aid, and today we are raising our fiscal 2018 guidance.”

However, per a Reuters report, the markets remained cautious despite all the good news with investors honing in on a decline in retail sales in the second quarter – down 0.7 percent compared to the same period a year ago with comparable retail sales dropping 2.7 percent.

“The street is panicked about poor retail activity, panicked about Amazon. When they don’t quantify what the impact of their rationalization decisions are, they shoot themselves in the foot. The stock should be up a lot more,” Baird Analyst Eric Coldwell told Reuters.