Walgreens Reports Mixed Q3 Results, Plans Major Store Closures; Stock Plunges 24%

Jun 27, 2024, 01:57 PM

Walgreens Boots Alliance has reported its fiscal 2024 third-quarter results, revealing a mixed performance. The company posted an adjusted earnings per share (EPS) of $0.63, missing the estimated $0.68, while revenue reached $36.4 billion, surpassing the expected $35.8 billion. U.S. comparable sales rose by 3.5%, with pharmacy sales up 5.7% and retail sales down 2.3%. Walgreens also announced a significant reduction in its fiscal year 2024 adjusted EPS guidance to $2.80-$2.95 from $3.20-$3.35, citing a challenging consumer environment. As part of a strategic review, the company plans to close a substantial portion of its approximately 8,600 U.S. stores, focusing on underperforming locations, with 25% identified as underperforming. CEO Tim Wentworth noted the company would also reduce its stake in VillageMD. This announcement led to a sharp decline in Walgreens' stock, which plummeted by 24%, reaching its lowest level since 1997.