If you’re someone who has followed the healthcare stock market over the past few years, there’s a good chance you have asked that question. The Illinois-based pharmacy giant’s stock price has decreased by 80% in the past five years — currently trading at about $11 per share, compared to about $56 in July 2019.
The company’s trademark red cursive “W” is becoming less and less ubiquitous across the nation’s street corners, too. During an earnings call June 27, Walgreens CEO Tim Wentworth revealed plans to shut down a quarter of the company’s 8,600 U.S. stores by 2027.
In the three months that ended May 31, the firm’s revenue inched up to $36.4 billion, a 2.6% increase compared to the same quarter a year ago. The company also reported a net income of $344 million, up from $118 million during the same period in 2023. Walgreens’ revenue and profitability numbers may be better than they were a year ago, but there are strong headwinds in the U.S. pharmacy world.
The company’s near term guidance doesn’t inspire too much confidence — during an earnings call two weeks ago, the company narrowed its adjusted earnings-per-share even further to between $2.80 and $2.95 per share.
The company declined to provide responses to MedCity News’ questions about why the company’s stock price has dropped so dramatically and how it plans to get itself back on track, referring all commentary to the earnings call held two weeks ago.
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