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Walgreens reported strong fiscal fourth-quarter sales and adjusted profit that exceeded expectations. The retail drugstore chain plans to close around 1,200 stores over the next three years, aiming to improve its financial performance. The company’s shares rose about 8% in premarket trading.

Throughout a challenging fiscal 2024, Walgreens dealt with various issues including pharmacy reimbursement pressure and decreased consumer spending. By focusing on cost-cutting measures and efficiency improvements, the company managed to exceed its goal of reducing costs by $1 billion during the fiscal year.

For the three-month period ending August 31, Walgreens reported adjusted earnings per share of 39 cents, beating analysts’ expectations, and revenue of $37.55 billion, up 6% from the previous year. The company’s net loss was attributed to a valuation allowance related to opioid settlements.

Looking ahead to fiscal 2025, Walgreens anticipates adjusted earnings per share of $1.40 to $1.80, with growth expected in its U.S. health care and international segments. The company also forecasts revenue of $147 billion to $151 billion for the coming fiscal year.

In the fiscal fourth quarter, Walgreens saw growth across all three business units. The company’s U.S. health-care unit reported increased sales, driven by partnerships with VillageMD and Shields Health Solutions. Similarly, the U.S. retail pharmacy segment experienced sales growth, particularly in pharmacy sales. Walgreens’ international unit also posted positive sales figures, with Boots contributing to the overall performance.

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