Key receivers
- Walgreens shares fell to their lowest level since 1999, when CEO Rosalind Brewer stepped down.
- Brewer will be replaced on an interim basis by lead independent director Ginger Graham.
- Walgreens also said it expects full-year revenue to be at the low end of its previous guidance.
Shares of Walgreens Boots Alliance ( WBA ) fell to levels not seen in a quarter century after Rosalind Beer, CEO of the largest U.S. pharmacy chain, stepped down less than three years into the job.
Beer and the board “mutually agreed” to step down as CEO and board member effective Aug. 31, the company said, but said she agreed to advise the company as Walgreens looks for a replacement. The board selected current lead independent director Ginger Graham as interim CEO.
Brewer took the top job at Walgreens in March 2021, serving as COO at Starbucks ( SBUX ) and CEO of Sam’s Club at Walmart ( WMT ). In a statement on LinkedIn, she wrote that she is “grateful to have the opportunity to lead Walgreens Boots Alliance and to work with such talented and dedicated colleagues.” She added, “Perhaps what I am most proud of is our work in developing a strategic pillar for WBA’s growth in healthcare.
However, the company has struggled to transition from a drugstore operator to providing more healthcare options. Stocks tumbled, with today’s decline taking them to their lowest level since 1999.
With the leadership change, Walgreens said it now expects full-year earnings per share (EPS) to be at or near the low end of its previous forecast. In June, the company raised its EPS guidance from $4.45 to $4.00 to $4.05 “to reflect consumer and category conditions, a lower contribution from Covid-19 and a more cautious macroeconomic outlook.”
YCharts
