Walgreens should scale back clinics to improve outlook, Jefferies analyst says

#walgreens #jefferies #yahoofinance #healthcare #clinics

Walgreens Boots Alliance (WBA) posted its second report, revealing a quarterly revenue that beat expectations but a narrow outlook for 2024, citing difficult conditions within the retail environment. Jefferies Healthcare Services Equity Researcher Brian Tanquilut joins Yahoo Finance to discuss Walgreens’ performance for the quarter and how it can mount a turnaround. Tanquilut lays out one of the big problems with Walgreens and their strategy to implement VillageMD clinics in stores: “The problem with the clinics is that they lose between $1 to $3 million a year on the front end in the first few years. And so, if you just run that math, it is a lot of losses that Walgreens has had to eat over the last couple years, and so as management tries to shore up the balance sheet, improve cash flows, improve profitability, this is one of the big sticking points where you could — they’re looking at, saying, do we really need to invest this much into a physician clinic strategy that is actually not even located in our stores anymore? ” For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor’s note: This article was written by Nicholas Jacobino

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