U.S. Stock Market News | Walgreens Boots Alliance Soars Over 18%, Plans to Close Approximately 1200 Stores Within 3 Years

On Tuesday, Walgreens Boots Alliance surged more than 18% intraday, and as of the time of writing, it was up 13.11% to $10.18. On the news front, Walgreens Boots Alliance's performance in the fourth quarter of the 2024 fiscal year exceeded expectations. The company also announced plans to optimize its business layout, aiming to close approximately 1200 stores over the next three years, including around 500 stores in the 2025 fiscal year. This move is expected to immediately increase adjusted earnings per share and free cash flow. The company's Q4 revenue increased by 6.1% when calculated at fixed exchange rates, reflecting sales growth across all segments. Comparable sales in the U.S. retail pharmacy business increased by 8.3% compared to the same period last year. Adjusted operating profit decreased by 38% to $424 million compared to the same period last year when calculated at fixed exchange rates, indicating soft performance in the U.S. retail and pharmacy businesses, offsetting the reversal of incentive accrual items and last year's post-sale leaseback gains, partially offset by cost-saving initiatives and improved profitability in the U.S. healthcare sector. Adjusted earnings per share were $0.39, higher than the market's general expectation of $0.36, but lower than the $0.67 in the same period last year