FILE PHOTO: People walk by a CVS pharmacy store in Manhattan, New York City, New York, U.S., November 17, 2021. REUTERS/Andrew Kelly
November 18, 2021
(Reuters) -CVS Health Corp would close about 300 stores a year for the next three years, the company said on Thursday, and expects to record an impairment charge of $1.0 billion to $1.2 billion in the fourth quarter of 2021.
The changes are a part of the health conglomerate’s strategic review of its retail business, as it seeks to diversify its sales channels.
CVS, best-known for its drugstore chain, also named Prem Shah, who would oversee the company’s omnichannel strategy, to the newly created role of chief pharmacy officer.
Rival Walgreens Boots Alliance also recently shifted focus beyond its drugstores, investing $5.2 billion in VillageMD and $330 million in post-acute and home care provider CareCentrix.
CVS cut its full-year 2021 profit per share forecast to between $5.46 and $5.67 from $6.13 to $6.23, but stuck to its adjusted profit view saying the impact from the store closures will be immaterial to adjusted EPS this year and the next.
(Reporting by Amruta Khandekar; Editing by Shailesh Kuber)
Source: One America News Network
