Walgreens ( WBA ) announced in a statement Friday that CEO Rose Brewer has stepped down Thursday in what was described as a mutual agreement.
“The Board of Directors and Rosalind Brewer have mutually agreed that effective August 31, 2023, Ms. Brewer will step down as CEO of the Company and as a member of the Board.”
The company declined to provide further details about the beer’s sudden departure, which comes weeks after former chief financial officer James Kehoe planned to leave. Two senior positions are now open in retail pharmacy with a focus on health care.
JPM analyst Lisa Gill wrote in a note Friday that the search for a CEO or CFO should be focused on health care — especially without Beer’s background.
“While WBA is still in the midst of a healthcare-focused transformation, we see continued leadership uncertainty as an added risk to investors. Given the company’s future focus on healthcare, we expect the new CEO and CFO (or both, if possible) to have a healthcare background,” he said. Gill wrote.
Evercore ISI analysts said in a note that while the move may have come as a surprise to some, it makes sense as the company’s broader health portfolio continues to grow.
“As Walgreens’ healthcare division continues to grow as a vertical, in an effort to offset the profitability challenges of its core business (starting at Hope 24), it makes sense to refresh and seek a new leadership team with more extensive experience in healthcare services,” the analysts said.
A career in retail
In the year Before taking the helm at Walgreens in 2021, amid the Covid pandemic, Brewer served as chief operating officer of Starbucks ( SBUX ) from 2017-2021 and president and CEO of Sam’s Club ( WMT ) from 2012-2021.
At Walgreens, she oversaw the transformation from a retail pharmacy chain to now offering a variety of healthcare services. The company It acquired a majority stake in VillageMD in 2021, followed by a $9 billion deal for medical group Summit Health.
In addition, the company is developing clinical trials aimed at increasing spatial diversity. It’s an area where Walgreens currently has a foothold, as competitor CVS ( CVS ) backed earlier this year.
But like its rivals, Walgreens lowered its outlook for the year, battling a Covid-related decline in demand. The company has returned to work as the demand for tests and vaccines has decreased Pre-pandemic struggles Finding ways to increase prescription fills and get more customers through the door to buy store products.
sudden rise
The company refused to elaborate on the news, and the timing seems surprising.
She quit the beer leader Thursday, according to a post on LinkedIn, in which she gave no clues. Beer appeared to indicate he was staying with the company.
“I left the meeting energized and thankful for all of our team members who play each critical role in delivering our vision for reimagining health care in our region. The new fiscal year begins Friday and I’m excited for what’s to come,” she wrote.
friday morning She wrote about his exit.Describing it as one of the most difficult memoirs he has ever written.
“This decision did not come without the greatest consideration of what is best for all of you, our shareholders, our customers, my patients and my family. I will continue to advise the board in the near future as they look for a permanent CEO. Healthcare expertise,” Beer wrote.
The news weighed on the company’s stock on Friday, with shares trading up nearly 7% in the session.
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