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From CNBC: Walgreens on Tuesday reported fiscal fourth-quarter sales and adjusted profit that beat Wall Street’s expectations, as the company slashes costs in an attempt to steer itself out of a rough spot.
The retail drugstore chain also said it plans to close roughly 1,200 stores over the next three years, which includes 500 in fiscal 2025 alone. The company said those closures will be “immediately accretive” to its adjusted earnings and free cash flow.
Walgreens has around 8,700 locations in the U.S., a quarter of which it says are unprofitable.
This comes after the struggling company already made several major adjustments in fiscal year 2024, including cutting $1 billion in costs by shuttering underperforming stores, laying off employees and using artificial intelligence to make its supply chain more efficient.
In an example of just how sever the situation is, CNBC writes that Walgreens reported a net loss of $3 billion for the fiscal fourth quarter – compared to a net loss of $180 million for the same period last year.
BREAKING: Walgreens has just announced they will close ANOTHER ~1,200 stores or ~14% of their US locations
Walgreens has plunged 90%+ from its high in under a decade
This is one of the most sudden & shocking collapse of a blue chip retailer and a wake up call for the sector pic.twitter.com/RqvbwYnanV
— Triple Net Investor (@TripleNetInvest) October 15, 2024
Walgreens says it will close 1,200 stores by 2027, as earnings top estimates https://t.co/TVx7d6CRLm
— CNBC (@CNBC) October 15, 2024
One reason Walgreens is struggling: CRIME
In many cities, stores have had to lock their inventory up to protect it from shoplifters.
4 yrs ago Walgreens were not all locked up but today you can’t even buy candy without pushing a button for help! But….they tell us crime is down! #2024 #walgreens pic.twitter.com/b5PAzWSCFV
— Brookerteejones (@Brookerteejones) October 15, 2024
“Walgreens has just announced they will close ANOTHER ~1,200 stores or ~14% of their US locations”
Crime is down…m’kay. pic.twitter.com/8VWYPWW5I0
— Douglas Ritz (@douglasritz) October 15, 2024
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