Walgreens slashes earnings guidance due to lower consumer spending, drop in Covid care demand

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CEO Rosalind Brewer said Walgreens will increase its cost-cutting program to $4.1 billion and take action to increase profitability in the health-care segment.

Walgreens slashes its full-year earnings guidance to a range of $4.00 to $4.05 per share, down from its previous forecast of $4.45 to $4.65 per share.

CEO Rosalind Brewer said Walgreens will increase its cost-cutting program to $4.1 billion and take immediate action to increase profitability in the company's health-care segment.People make their way near a Walgreens pharmacy on March 09, 2023 in New York City.on Tuesday slashed its full-year earnings guidance as it fell short of Wall Street expectations for its fiscal third quarter due to lower consumer spending and a drop in demand for Covid vaccines and testing.

CEO Rosalind Brewer said she is increasing Walgreen's cost-cutting initiative to $4.1 billion and is taking immediate action to increase profitability in the company's U.S. health-care segment. The earnings miss is the first time Walgreens has underperformed analyst expectations since July 2020.

 

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