Walgreens posted a nearly $6 billion loss in the second quarter of 2024, a steep loss that beat estimates, according to a March 28 release from the company.
Walgreens posted a second-quarter net loss of $5.9 billion, compared to net earnings of $703 million in the second quarter of 2023. The company also posted a 13.1 billion operating loss, compared to a $197 million operating income in the same period the year prior.
Walgreens CEO Tim Wentworth said in the release that he is confident the company will achieve its goal of cutting $1 billion in costs this year.
"We're encouraged by our first quarter of U.S. Healthcare positive adjusted EBITDA and continued topline growth alongside another quarter of strong execution in pharmacy, as we look to re-energize and evolve its impact both at Walgreens and at large," he said. "As we continue to operate in a challenging retail environment, we are taking actions to focus on customer engagement and value."
The company also posted a $12.4 billion impairment charge from the reduction of the goodwill value of primary care chain VillageMD, which Walgreens acquired a majority stake in for $5.2 billion in October 2021.
Walgreens has cut a number of VillageMD clinics this year, exiting the Illinois, Indiana and Florida markets and selling 11 practices in Rhode Island. In total, it plans to pull VillageMD from five markets and close around 60 clinics in 2024.
VillageMD operates 680 clinics majority-owned by Walgreens Boots Alliance, including 200 clinics co-located with Walgreens and 170 third-party clinics at its stores.