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Walgreens to Close 1,200 Stores, 14% of U.S. Fleet, After $3 Billion Loss and Earnings Beat

Oct 15, 2024, 01:15 PM

Walgreens Boots Alliance announced plans to close approximately 1,200 stores—about 14% of its U.S. locations—over the next three years, including 500 closures in fiscal 2025, as part of a broader strategy to turn around its struggling U.S. business. Newly appointed CEO Tim Wentworth aims to revamp the pharmacy giant amid sluggish consumer spending and low drug reimbursement rates. The company reported a $3 billion quarterly loss. In its fiscal fourth quarter, Walgreens reported adjusted earnings per share of $0.39, down 41% year-over-year but beating analysts' estimates of $0.36. Revenue increased 6% year-over-year to $37.55 billion, surpassing expectations of $35.75 billion. The company stated that the store closures will be immediately accretive to adjusted earnings, and shares rose 7% premarket following the earnings report.