Walgreens reported stronger-than-expected earnings for its fiscal fourth quarter, with adjusted profits and sales beating Wall Street’s predictions.
In a move aimed at cutting costs and improving profitability, the retail drugstore chain announced plans to close around 1,200 stores by 2027, including 500 closures in fiscal 2025.
The company, which is facing challenges such as pharmacy reimbursement pressure and softer consumer spending, has been aggressively reducing costs through various measures, including store closures and layoffs.
Despite these efforts, Walgreens posted a $3 billion net loss for the quarter due to settlement-related costs. Shares of Walgreens rose approximately 6% in premarket trading following the announcement.
