Walgreens says it will shutter a 'meaningful percent' of its 8,600 stores across the U.S.
Transcript:
CONWAY GITTENS: Here's what we're watching on TheStreet today.
Wall Street is continuing to digest mixed corporate earnings after a slew of earnings results Wednesday.
Investors are anticipating Friday's Personal Consumption and Expenditures Index, which measures consumer inflation and spending in May. This report will be closely watched for any hints into the Federal Reserve's path forward on interest rates. Markets are pricing in a more than 50 percent chance of a rate cut as soon as September.
In other news, after reporting weaker-than-expected earnings and slashing its full-year profit outlook, Walgreens announced it will be closing a significant number of stores. While the company hasn't disclosed just how many of its roughly 8,600 locations will close, CEO Tim Wentworth said it will be a "meaningful percent."
Wentworth went on to say, "We continue to face a difficult operating environment, including persistent pressures on the US consumer and the impact of recent marketplace dynamics which have eroded pharmacy margins." He also said that only 75% of all Walgreens stores drive 100% of the company's profitability.
However, Walgreens is not the only drugstore chain to struggle over the past several years. CVS plans to have closed around 900 locations by the end of 2024, while Rite Aid has closed or announced the closing of hundreds of stores since filing for bankruptcy in October of last year.
Despite the weak quarter, Walgreens' sales were up 2.6% year-over-year.
That'll do it for your daily briefing. From the New York Stock Exchange, I'm Conway Gittens with TheStreet.
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