Drugstore chain CVS to close 900 stores over three-year span


CVS Health Corp. CVS, +2.81% said it will close about 300 stores a year for the next three years as it looks to reduce store density in certain areas, following an evaluation of changes in population and consumer buying patterns. The drugstore chain’s stock tacked on 0.3% in premarket trading. CVS said earlier this month that it had more than 9,900 retail stores. The company expects to record a impairment charge of $1.0 billion to $1.2 billion for the store closures. As a result, the company cut its net earnings-per-share guidance range for 2021 to $5.46 to $5.67 from $6.13 to $6.23, but the adjusted EPS outlook is unchanged at $7.90 to $8.00. The company also announced some management moves, including naming Prem Shah to the newly created role of Chief Pharmacy Officer. The stock has rallied 10.8% over the past three months while the S&P 500 SPX, +0.34% has tacked on 6.7%.

This article was originally published by Marketwatch.com. Read the original article here.

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