Walgreens Reports $3 Billion Loss, Plans to Close 1,200 Stores

Walgreens reported a $3 billion loss for Q4 2024, reflecting ongoing fiscal challenges, including pharmacy reimbursement pressures and losses from its primary care investments. As part of its restructuring plan, the company will close 1,200 underperforming stores over the next three years, with 500 closures scheduled in fiscal 2025. Walgreens aims to improve cash flow and align its store base with more profitable locations.

Despite these setbacks, the company surpassed analysts' expectations for Q4, reporting adjusted earnings per share of 39 cents, higher than Wall Street's prediction of 36 cents. Walgreens' U.S. healthcare segment showed growth, driven by its specialty pharmacy and VillageMD initiatives, but the company still faces significant operating losses in its healthcare services. CEO Tim Wentworth emphasized plans to monetize non-core assets like VillageMD to reduce debt and focus on the retail pharmacy business.

Walgreens’ revenue for fiscal 2024 grew 6.2% to $147.7 billion, although losses rose due to higher operating costs and non-cash impairment charges. Looking ahead to fiscal 2025, the company projects adjusted earnings per share between $1.40 and $1.80, with plans to streamline operations and continue its cost-cutting strategy while addressing challenges in its primary care investments.