Walgreens woes continue with earnings miss, guidance cut and plans to shutter more stores

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Walgreens shares tumbled early Thursday after the drugstore chain signaled that more store closings are on the way, missed earnings expectations for its third quarter and cut its annual forecast.

The company said it was finishing a multiyear plan to shutter some underperforming U.S. stores, but it didn’t detail how many were targeted.

Plus, analysts say they’ve also been hit by growing competition from Walmart, Amazon and other discount retailers over sales of goods sold outside their store pharmacies. Consumers also tend to grow more price conscious when inflation rises. Chief Executive Tim Wentworth said in a statement that the company continues to face challenges that include “persistent pressure on the U.S. consumer.” Wentworth, who joined the company last fall, has been conducting a review of its business.

The company said it earned $344 million in its fiscal third quarter, with adjusted results totaling 63 cents per share. Revenue rose nearly 3% to $36.35 billion.

 

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