See what’s clicking on FoxBusiness.com.
Walgreens plans to close at least 1,200 stores over the next three years as the pharmacy giant seeks to cut costs and transform operations under a new leader.
One of the nation’s largest drugstore chains, Walgreens said it was targeting 900 to 1,000 stores across the US by the end of fiscal year 2027, part of the company’s “multi-year strategic plan.” About 500 stores are expected to close by the beginning of the 2025 fiscal year.
WALGREENS TO PAY $106.8M IN CLAIMS PAYING TO GOVERNMENT ON UNDISCHARGED CONDITIONS.
In June, the company announced its intention to close a “significant” number of underperforming stores across the US as it contends profitability challenges and rate declines. But CEO Tim Wentworth, who took over in October 2023, did not give an estimate at the time of how many stores would be affected. He noted that a “significant percentage” of underperforming locations would close.
Wentworth said in June that there is a “difficult operating environment, including continued pressure on American consumers and the impact of recent market changes that have eroded pharmacy margins.”
People approach a Walgreens pharmacy in New York City. (Leonardo Munoz/VIEWpress/Getty Images)
WALGREENS SUPPORTS PRICES ON 1,300 PRODUCTS
In its latest earnings report Tuesday, Wentworth said the company’s fourth-quarter and full-year results “reflect our strong performance in cost management.”
A pharmacist works at a computer station at a Walgreens store in Oak Park, Illinois. (Daniel Acker/Bloomberg via Getty Images/Getty Images)
Walgreens reported revenue of $37.55 billion for the fiscal fourth quarter, up 6% from the same period last year and beating Wall Street estimates of $35.75 billion.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The company also reported a net loss of $3 billion, or $3.48 per share, for the quarter.
Shares of Walgreens Boost Alliance rose more than 4% in premarket trading on Tuesday.
| A ticker | Security | Finally | Change | Change % |
|---|---|---|---|---|
| The WBA | WALGREENS BOOTS ALLIANCE INC. | 9.00 | -0.21 |
-2.28% |
Through fiscal 2025, Wentworth said Walgreens plans to focus on “stabilizing pharmacy by improving our operations, controlling operating costs, improving cash flow, and continuing to address reimbursement models to support margin expansion and maintain patient access into the future.”
Source link
