Walgreens to Close 1,200 Stores Over Three Years Amid Earnings Beat; Shares Rise 7.4%

Oct 15, 2024, 11:30 AM

Walgreens Boots Alliance announced plans to close approximately 1,200 stores, representing about 14% of its U.S. locations, over the next three years as part of a strategy to turn around its struggling U.S. business under new CEO Tim Wentworth. The company reported a fourth-quarter loss per share of $3.48 due to a non-cash charge related to opioid liabilities. Adjusted earnings per share were $0.39, surpassing analysts' estimates of $0.36. Revenue for the quarter was $37.55 billion, exceeding expectations and increasing 6% year-over-year. The U.S. Retail Pharmacy segment reported revenue of $29.47 billion, outperforming estimates. Walgreens is targeting approximately 500 store closures in fiscal year 2025. Shares of Walgreens rose 7.4% in premarket trading following the earnings beat.