By Micah Maidenberg

Walgreens Boots Alliance Inc. said demand fell off in its international business during the drugstore chain's latest quarter with consumers in the U.K. staying at home due to the coronavirus.

A "dramatic reduction" in customer traffic at its Boots UK stores, including an 85% decline in April, weighed on results for the business, Walgreens said. The company said it recorded non-cash impairment charges of $2 billion tied to the Boots UK unit.

Overall, Walgreens said it lost $1.71 billion, or $1.95 a share, for its fiscal third quarter ended May 31, compared with a profit of $1.03 billion, or $1.13 a share, the year earlier. Its adjusted profit fell to 83 cents a share and was short of expectations.

The company generated $34.6 billion in sales, roughly flat year over year. Analysts polled by FactSet predicted $34.3 billion in sales for the latest period.

In the U.S. retail unit, sales rose about 3% from the year earlier, to $27.4 billion for the latest quarter. Pharmacy sales were up 4.6%, while prescriptions filled in the third quarter decreased 1.3%.

"Globally, pharmacy volume was impacted by a drop in doctor visits and hospital patient admissions," the company said.

Write to Micah Maidenberg at micah.maidenberg@wsj.com