Strategic Restructuring
plans to close approximately 1,200 stores over the next three years, with about 500 closures occurring in the current fiscal year, aiming to enhance adjusted earnings and free cash flow.
The move is part of a broader turnaround strategy under CEO , addressing challenges like tight prescription reimbursements and rising operational costs.
Financial and Operational Adjustments
Walgreens is reconsidering its U.S. healthcare business, including the potential sale of its VillageMD clinic business, after previously investing heavily in its expansion.
In response to financial pressures, Walgreens cut its dividend and slashed its fiscal 2024 forecast, with shares seeing a significant drop this year before a recent uptick following the cost-cutting announcement.