(Reuters) – Walgreen Boots Alliance cut its profit forecast for fiscal 2024 and announced store closures on Thursday, citing challenging pharmacy industry trends and a worse-than-expected U.S. consumer environment.
The company will close certain underperforming U.S. stores as part of its strategic review and simplify its healthcare portfolio in the country.
Investors are banking on CEO Tim Wentworth to steer strategy and cost-saving efforts at Walgreens, as the drugstore operator struggles with declining demand at its retail operations due to reduced spending from inflation-weary consumers and weak COVID product sales.
Wentworth, an industry veteran, came on board last October.
Shares of the Deerfield, Illinois-based company fell nearly 4% in premarket trading, after having declined 40% for the year so far.
The company now expects an adjusted profit of $2.80 to $2.95 per share for its financial year ending August, compared with its $3.20 to $3.35 per share forecast in March.
Analysts, on average, expect it to record an annual profit of $3.20 per share, according to LSEG data.
On an adjusted basis, the company reported earnings of 63 cents per share for the third quarter, compared with estimates of 68 cents.
(Reporting by Bhanvi Satija, Christy Santhosh and Sneha S K in Bengaluru; Editing by Devika Syamnath)
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