Walgreens Posts Stronger Results, Eyes Progress On Turnaround Plan

Walgreens reported better-than-expected fiscal first-quarter results, offering optimism about its turnaround strategy for reviving its struggling business, Tom Murphy reported for the Associated Press (AP).

Walgreens also exceeded expectations in transferring prescriptions from stores slated for closure to nearby locations. I Photo: Harrison Keely Wikimedia Commons 

Shares of the company surged Friday after leaders announced progress in addressing key industry challenges, including shrinking prescription reimbursements.

CEO Tim Wentworth highlighted success in renegotiating contracts with commercial insurers and government programs like Medicare and Medicaid to account for high-cost drugs.

Walgreens also exceeded expectations in transferring prescriptions from stores slated for closure to nearby locations. The company announced plans in October to close approximately 1,200 underperforming US locations.

In its fiscal first quarter, it closed 70 stores and aims to shut down around 500 by year-end. Despite the closures, Walgreens still operates about 8,500 stores in the US and Puerto Rico, along with several thousand locations in Europe and Asia.