Walgreens to Close 1,200 Stores, Adjusted EPS Down 41% Amid Net Loss on Opioid Charges

Oct 15, 2024, 12:19 PM

Walgreens Boots Alliance reported better-than-expected fourth-quarter earnings, announcing adjusted earnings per share of $0.39, surpassing analysts' estimates of $0.36, though adjusted EPS declined 41% year over year. Revenue reached $37.55 billion, exceeding expectations of $35.75 billion. The company reported a net loss per share of $3.48, primarily due to a non-cash charge related to opioid liabilities. Despite the earnings beat, Walgreens plans to close approximately 1,200 stores in the next three years, including around 500 closures in fiscal year 2025. This move represents about 14% of its US store fleet and is part of a broader strategy to cut costs as 1 in 4 locations are unprofitable amid sluggish consumer spending and low drug reimbursement rates. The new CEO, Tim Wentworth, is spearheading efforts to turn around the struggling pharmacy chain, which reported an $8.6 billion annual net loss. Walgreens also provided fiscal year 2025 adjusted EPS guidance of $1.40 to $1.80, below analysts' expectations of $1.73.