CHICAGO — Walgreens Boots Alliance (WBA, Financial)saw a healthy 5.22% uptick in price in early trading Tuesday after posting stronger-than-expected fiscal Q4 earnings, backed by its store optimization plan. Moreover, the company announced a considerable 6.1% top-line increase, driven by growth across all key segments. However, U.S. retail pharmacy performance continues lagging, which led to a sizeable 38% drop in adjusted operating income to $424 million.
Despite the hiccups though, Walgreens reported healthy adjusted earnings per share of 39 cents, ahead of the 36-cent consensus, while being down from the 67-cent EPS posted a year ago. The company plans to close approximately 1,200 stores over the next three years, including 500 closures in fiscal 2025, which should immediately impact earnings and cash flow.
Furthermore, CEO Tim Wentworth emphasized that 2025 is likely to be a “rebasing year” for Walgreen's strategic turnaround, expressing confidence over its long-term financial positioning. It's important to note that the company operates around 8,700 stores in the U.S. Additionally, the company's 2025 outlook for revenue and adjusted EPS surpassed analysts' expectations, adding to its bull-case.
