Walgreens Boots shares lower as CEO Rosalind Brewer steps down

Updated at 8:05 am EDT

Walgreens Boots Alliance  (WBA) - Get Free Report shares moved lower Friday after it said CEO Rosalind Brewer has stepped down as CEO after just two and a half years at the helm of the the pharma retail group.

Brewer, who took over the CEO role in March of 2021, will also leave her seat as a board member of the group by mutual agreement. the company said, but will continue to act as adviser while it looks for a permanent replacement.

Ginger Graham, former president and CEO of Amylin Pharmaceuticals and current Walgreens Boots board member, will replace Brewer on an interim basis, the company said. 

"Roz navigated the Company through the global pandemic, overseeing the critical rollout of vaccines in Walgreens pharmacies and to high-risk populations across the country," said chairman Stefano Pessina. "She furthered our consumer facing capabilities while supporting the culture of community and team-member engagement in difficult times. We appreciate her hard work and commitment to the Company during this period of unprecedented change.” 

Walgreens also said it sees full-year profits at or near the lower end of its prior forecast, which it issued in late July, of adjusted earnings in the region of $4.00 to $4.05 per share, linked in part to 'Significantly lower demand for COVID-related services, a more cautious and value-driven consumer, and a recently weaker respiratory season."

Walgreens Boots Alliance shares, a Dow component, were marked 0.77% lower in pre-market trading to indicate an opening bell price of $25.10 each. Shares in the group have fallen more than 52% since Brewer took over from chairman Pessina on March 15, 2021.

Last month, Walgreens Boots posted weaker-than-expected earnings of $1.00 per share for its fiscal third quarter, with revenues up 8.7% to $35.42 billion but trimmed its full-year profit guidance.

Our revised guidance takes an appropriately cautious forward view in light of consumer spending uncertainty, while still demonstrating clear drivers of a return to operating growth next fiscal year," Brewer said at the time. "We are raising our cost savings program target to $4.1 billion and taking immediate actions to optimize profitability for our U.S. Healthcare segment."

• Get investment guidance from trusted portfolio managers without the management fees. Sign up for Action Alerts PLUS now.