Walgreens to Close 1,200 Stores—14% of U.S. Total—Under New CEO After Beating Estimates

Oct 15, 2024, 12:42 PM

Walgreens Boots Alliance reported a fourth-quarter loss per share of $3.48, including a non-cash charge related to opioid liabilities, contributing to a $3 billion quarterly loss. However, adjusted earnings per share were $0.39, exceeding estimates of $0.36 despite a 41% decline year-over-year. Revenue rose 6% to $37.55 billion, beating expectations of $35.75 billion. US Retail Pharmacy revenue increased to $29.47 billion, surpassing the estimated $27.48 billion. The company announced plans to close approximately 1,200 stores—representing about 14% of its U.S. store fleet—over the next three years, with around 500 closures in fiscal 2025. This initiative is part of a turnaround strategy led by new CEO Tim Wentworth to address sluggish consumer spending and low drug reimbursement rates. Walgreens provided fiscal 2025 guidance, expecting adjusted earnings per share between $1.40 and $1.80 and sales between $147 billion and $151 billion. Shares rose 7.4% in premarket trading following the earnings report.