Thursday, June 27, 2024 1:08PMWalgreens 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.
Walgreens and major competitors like CVS and Rite Aid - which is going through a bankruptcy reorganization - have already closed hundreds of stores over the past few years. The companies have dealt with challenges that include years of tight reimbursement for their prescriptions and rising costs for running their locations.
Walgreens also has been closing VillageMD primary care clinics it had been installing next to its stores in order to grow its presence as a health care provider. Walgreens Boots Alliance Inc. runs about 12,500 drugstores worldwide, including more than 8,600 locations in the United States.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.