Days after appointing a new CEO, shares of Walgreens Boots Alliance are on pace for the best percentage increase in nearly a year, according to Dow Jones Market Data Group.
Shares rose over 7% last November and Thursday's gains came after the drug-store chain announced a large cost-cutting plan.
"In just six weeks, we have taken a number of steps to align our cost structure with our business performance, including planned cost reductions of at least $1 billion, and lowered capital expenditures by approximately $600 million" said interim CEO Ginger Graham.
Walgreens named former Cigna executive Tim Wentworth permanent Chief Executive Officer earlier this week. He will be tasked with continuing to improve business after a money losing quarter and year.
Amid a 20.7% headwind from diminished sales on Covid-related products, Walgreens’ fiscal 2023 loss per share was $3.57 compared to a profit of $5.01 per share during the same period a year-ago.
Last week, a Walgreens spokesperson told FOX Business that it had adjusted its COVID-19 vaccine availability in response to ongoing appointment disruptions. Customers on social media have reported numerous vaccine appointment cancellations at Walgreens locations.
A group of pharmacists at the chain walked off the job earlier this citing staffing shortages, among other issues.
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Walgreens also said it will not provide guidance beyond fiscal 2024 as the company continues to evaluate macroeconomic trends and challenges, while expecting to provide long-term guidance, if any, in the future.
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Despite the drop in Covid-related sales, the company said fourth quarter sales jumped 9.2% year-over-year to $35.4 billion and up 8.3% on a constant currency basis.
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FOX Business Reporter Angelica Stabile and Reuters contributed to this report.
