Walgreens recently surprised Wall Street with better-than-expected financial results for the first quarter of the fiscal year. Despite a $265 million loss, the drugstore chain is working hard to rebuild its business. They're closing stores, trying to fix prescription reimbursement issues, and battling rising costs. The company has already shut down around a thousand stores since buying some Rite Aid locations in 2018. They run over 3, 700 stores internationally too, spread across countries like the UK, Mexico, Thailand, and Ireland.

The loss was mainly due to the costs of closing stores. CEO Tim Wentworth said the company is focusing on cost control and improving cash flow this year. He believes their progress so far shows that their retail pharmacy model can be sustainable. Adjusted earnings per share were 51 cents, which was better than expected. Revenue also grew by 7. 5%, hitting $39. 5 billion. This was helped by an increase in prescriptions, even though the cough, cold, and flu season wasn't as strong.

Walgreens has been scaling back a health care business in the US. They're sticking with their October forecast for fiscal 2025, expecting adjusted earnings per share between $1. 40 and $1. 80. Shares rose in early morning trading, a start that's better than last year.

2024 began with Walgreens cutting its quarterly dividend to strengthen the balance sheet. Then, they were removed from the Dow Jones Industrial Average. Shares took a hit and never recovered, losing about two-thirds of their value. But on Friday, shares jumped over 16% in premarket trading, reaching $10. 71.

Walgreens' Turnaround Plan: Hits and Misses

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