Walgreens Cuts Full-Year Profit Outlook, Announces Store Closures Amid Challenging Consumer Environment

Chicago, Illinois, Illinois, USA United States of America
CEO Tim Wentworth attributes challenging consumer environment for weaker consumer spending
Company finalizing multi-year program to close underperforming U.S. stores and implement cost-cutting measures
Walgreens announces disappointing third-quarter earnings and slashes full-year profit outlook
Walgreens has faced difficulties including declining share prices, reduced prescription drug revenues, and pressure from competitors like Amazon and CVS
Walgreens Cuts Full-Year Profit Outlook, Announces Store Closures Amid Challenging Consumer Environment

Walgreens, the retail pharmacy giant, announced disappointing third-quarter earnings and slashed its full-year profit outlook due to a challenging consumer environment. The company now expects fiscal 2024 adjusted earnings of $2.80 to $2.95 per share, down from the previous outlook of between $3.20 and $3.35 per share (CNBC, Reuters).

CEO Tim Wentworth stated that consumer spending will be weaker for the rest of the year (NBC News). In response to this trend, Walgreens is finalizing a significant multi-year program to close some of its underperforming U.S. stores and implement cost-cutting measures (Reuters).

The pharmacy chain has faced difficulties for years, including declining share prices, reduced prescription drug revenues, and pressure from competitors like Amazon and big-box chains such as CVS (NBC News). In an interview with CNBC, Wentworth stated that the consumer is stunned by the absolute prices of things and that they have had to get really keen in discretionary things (NBC News).

Walgreens has been undergoing a transformation into a large health-care company, focusing on its health-care segment as a critical part of this push. However, the challenging consumer environment and financial strain have hindered these efforts (CNBC).

The company's stock dropped significantly after the earnings report, with shares falling nearly 20% on Thursday (Reuters). Analysts expect an annual profit of $3.20 per share for Walgreens, but the forecast cut weighed on rival CVS Health's stock as well, sending it about 5% lower in early trade (Reuters).

Walgreens has already closed 484 stores in the UK and 625 stores in the U.S., according to a regulatory filing. The company is open to closing down more stores beyond those being reviewed as part of its multi-year program (Reuters).


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Confidence

85%

Doubts
  • Are there any other factors contributing to Walgreens' decision to close stores?
  • Is the consumer environment truly the only reason for Walgreens' financial struggles?

Sources

96%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Walgreens stock plunges as drugstore chain slashes profit guidance in 'challenging' consumer environment

CNBC News Annika Kim Thursday, 27 June 2024 11:01
  • Unique Points
    • Walgreens now expects fiscal 2024 adjusted earnings of $2.80 to $2.95 per share, down from the previous outlook of between $3.20 and $3.35 per share.
  • Accuracy
    • CEO Tim Wentworth cited a 'challenging' consumer environment.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (95%)
    The author uses the term 'challenging' twice to describe the environment for pharmacies and consumers. This is a vague and subjective term that does not provide any clear or specific information. It could be interpreted in many ways, making it an example of a Dichotomous Depiction fallacy. However, since this is the only potential fallacy found in the article, the score remains high.
    • The environment for pharmacies and consumers is 'challenging'
    • Consumers are 'stunned' by prices and resist current pricing
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

96%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Walgreens cuts profit view, looks to shut more stores on sluggish spending

Yahoo Finance Bhanvi Satija Thursday, 27 June 2024 13:50
  • Unique Points
    • Walgreens is finalizing a
    • Shares dropped significantly after quarterly earnings fell short of expectations
    • CEO Tim Wentworth stated consumer spending will be weaker for the rest of the year
  • Accuracy
    • Walgreens cut its profit forecast for fiscal 2024.
    • The company will close more underperforming U.S. stores.
    • Shares dropped significantly after the announcement.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (95%)
    The article contains some instances of inflammatory rhetoric and an appeal to authority, but no formal or dichotomous fallacies are present. The authors use the phrase 'absolutely terrible' to describe Walgreens' results and quote a portfolio manager as saying 'they brought in new CEO Tim Wentworth and he has a good history on the healthcare services side', which could be seen as an appeal to authority. However, these instances do not significantly impact the overall quality of the article. The authors also provide clear and concise descriptions of Walgreens' financial performance and actions taken by its CEO, making it easier for readers to understand the situation.
    • ][The results this morning were just absolutely terrible. I mean, it's kind of been the theme over the last three to eight earnings reports to be brutally honest][/
    • They brought in new CEO Tim Wentworth and he has a good history on the healthcare services side
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

99%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Walgreens plans store closures as CEO says consumers 'stunned' by prices

NBC News Digital Thursday, 27 June 2024 13:51
  • Unique Points
    • Walgreens is planning store closures due to challenging environment for pharmacies and consumer spending
    • CEO Tim Wentworth stated consumer spending will be weaker for the rest of the year
    • 75% of Walgreens stores drive all profitability and remaining stores will be closed after careful consideration
    • Walgreens has faced difficulties for years including declining share price, reduced prescription drug revenues, and pressure from competitors like Amazon and big-box chains
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (95%)
    The author makes several statements about the consumer being 'stunned' by prices and their resistance to current pricing. This is an appeal to emotion and a hasty generalization based on the CEO's observations. The author also mentions that Walgreens has been under pressure for years due to declining revenues, reduced profits, and competition from big-box chains and Amazon. These statements are not fallacious but provide context for the article.
    • ]The consumer is absolutely stunned by the absolute prices of things,
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (0%)
    None Found At Time Of Publication