Walgreens shares plunge as pharmacy chain slashes profit forecasts

"We continue to face a difficult operating environment," according to chief executive Tim Wentworth, "including persistent pressures on the US consumer and the impact of recent marketplace dynamics which have eroded pharmacy margins".

The company is now guiding to adjusted earnings per share of $2.80-2.95 for its fiscal year ending 31 August, compared with an earlier prediction of $3.20-3.35.

In an interview with CNBC, Wentworth said management had assumed that the consumer environment would "get somewhat stronger" in the second half of the year, but this has failed to materialise due to the high cost of living.

Walgreens' share price was down 24.5% at $11.83 by 1139 EDT.

Despite the weak guidance, the company actually beat sales forecasts with its third-quarter top line, with sales rising 2.6% year-on-year to $36.4bn, marginally ahead of the $35.94bn expected by the market.

Adjusted EPS however dropped 36.6% to just $0.63, missing the $0.68 consensus forecast.

Operating losses over the first three quarters totalled $13.1bn, double the $6.4bn lost the year before, after a $12.4bn non-cash goodwill impairment charge related to VillageMD – its doctor-staffed primary care clinic which it is scaling back.