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Walgreens shares tumbled aboriginal Thursday aft the drugstore concatenation signaled that much store closings are connected the way, missed net expectations for its 3rd 4th and chopped its yearly forecast.
The institution said it was finishing a multiyear program to shutter immoderate underperforming U.S. stores, but it didn't item however galore were targeted.
Walgreens and large competitors similar CVS and Rite Aid - which is going done a bankruptcy reorganization - person already closed hundreds of stores implicit the past fewer years. The companies person dealt with challenges that see years of choky reimbursement for their prescriptions and rising costs for moving their locations.
Plus, analysts accidental they've besides been deed by increasing contention from Walmart, Amazon and different discount retailers implicit income of goods sold extracurricular their store pharmacies. Consumers besides thin to turn much terms conscious erstwhile ostentation rises.
Walgreens besides has been closing VillageMD superior attraction clinics it had been installing adjacent to its stores successful bid to turn its beingness arsenic a wellness attraction provider.
Chief Executive Tim Wentworth said successful a connection that the institution continues to look challenges that see "persistent unit connected the U.S. consumer." Wentworth, who joined the institution past fall, has been conducting a reappraisal of its business.
Walgreens Boots Alliance Inc. runs astir 12,500 drugstores worldwide, including much than 8,600 locations successful the United States.
RELATED | Walgreens is closing 450 locations, including 150 successful the US
The institution said it earned $344 cardinal successful its fiscal 3rd quarter, with adjusted results totaling 63 cents per share. Revenue roseate astir 3% to $36.35 billion.
Analysts were looking for net of 68 cents per stock connected $35.9 cardinal successful revenue, according to FactSet.
Walgreens besides said it present expects adjusted net to scope from $2.80 to $2.95 for its fiscal year, which ends successful August. That's down from a forecast of $3.20 to $3.35 per stock that it had narrowed successful March.
Analysts expect $3.20 per share.
That guidance chopped was not "overly shocking to america arsenic the institution present begins the adjacent limb of its turnaround," Leerink Partners expert Michael Cherny said successful a probe note.
But the wide results amazed investors. Shares of the Deerfield, Illinois, institution sank astir 16% to $13.20 successful premarket trading.
READ ALSO | Walgreen's slashing prices connected much than 1,500 items successful designation of inflation
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