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Key Takeaways
- Walgreens shares fall to their lowest stage since 1999 after CEO Rosalind Brewer stepped down.
- Brewer shall be changed on an interim foundation by Lead Unbiased Director Ginger Graham.
- Walgreens additionally mentioned it expects full-year earnings to be on the low finish of its earlier steerage.
Walgreens Boots Alliance (WBA) shares tumbled to ranges not seen in nearly 1 / 4 century after the largest U.S. pharmacy chain introduced CEO Rosalind Brewer stepped down after lower than three years on the helm.
The corporate indicated that Brewer and the board “mutually agreed” that she would depart as CEO and a member of the board as of August 31. Nonetheless, Walgreens mentioned she agreed to remain on to advise the corporate because it searches for her alternative. The board selected present Lead Unbiased Director Ginger Graham as interim CEO.
Brewer took the highest job at Walgreens in March 2021 after being COO at Starbucks (SBUX) and CEO of Walmart’s (WMT) Sam’s Membership. In a press release on LinkedIn, she wrote that she was “grateful to have had the chance to steer Walgreens Boots Alliance and to work alongside such gifted and devoted colleagues.” She added, “Maybe what I’m most pleased with is our work to develop a strategic pivot in direction of the expansion of WBA into well being care.”
Nonetheless, the corporate has struggled in making the shift from a drug retailer operator to offering a variety of well being care choices. Shares have sunk, with in the present day’s decline sending them to their lowest stage since 1999.
Together with the change in management, Walgreens additionally mentioned it now expects its full-year earnings per share (EPS) to be at or close to the low finish of its earlier forecast. In June, the corporate lower its EPS steerage to $4.00 to $4.05 from $4.45 “to mirror shopper and class circumstances, decrease COVID-19 contribution, and a extra cautious macroeconomic ahead view.”
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