Walgreens Shares Fall to Near 24-Year Lows After CEO Rosalind Brewer Steps Down

Walgreens Boots Alliance (WBA) stocks plummeted to levels not witnessed in almost 25 years following the news of CEO Rosalind Brewer's resignation after leading the largest American pharmacy chain for less than three years.

The company stated that Brewer and the board reached a "mutual agreement" for her departure as CEO and board member by August 31. Nonetheless, Walgreens mentioned that she agreed to provide guidance to the company during their search for a new CEO. As an interim solution, the board appointed Ginger Graham, the current Lead Independent Director, as the temporary CEO.

Brewer assumed the highest position at Walgreens in March 2021, following her role as the Chief Operating Officer at Starbucks (SBUX) and CEO of Walmart's (WMT) Sam's Club. Sharing her thoughts on LinkedIn, she expressed her appreciation for having the chance to lead Walgreens Boots Alliance and collaborate with highly skilled and committed colleagues. Brewer also highlighted her immense pride in spearheading the strategic shift of WBA towards expansion in the healthcare sector.

Nevertheless, the company has faced difficulties in transitioning from a retailer of pharmaceutical products to offering a diverse selection of healthcare alternatives. Stock prices have plummeted, and today's decline has caused them to reach their lowest point since 1999.

In addition to the shift in management, Walgreens also announced that it anticipates its earnings per share (EPS) for the entire year to possibly fall towards the lower boundary of its previous estimate. Back in June, the company revised its EPS projection from $4.45 to a range of $4.00 to $4.05 citing factors such as consumer and market conditions, reduced impact of COVID-19, and a more careful outlook on the overall economy.