This story was originally published on Retail Dive. To receive daily news and insights, subscribe to our free daily Retail Dive newsletter. About five months after formally being acquired by Sycamore Partners, Walgreens is laying off hundreds of employees. In Texas, 159 employees are impacted, according to a notice the company filed with the state dated Feb. 12. The effective layoff date is June 1 and marks the closure of the company’s distribution center in Houston. Additionally, 469 employees are im ...

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for CVS Health despite higher revenues, with a focus on how actual results will compare to estimates [1] Earnings Expectations - CVS Health is expected to report quarterly earnings of $0.99 per share, reflecting a year-over-year decrease of 16.8% [3] - Revenue projections stand at $103.13 billion, indicating a 5.5% increase from the previous year [3] Estimate Revisions - The consensus EPS estimate has been revised down by 0.1% over the last 30 days, indicating a reassessment by analysts [4] - The Most Accurate Estimate for CVS Health is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +0.38% [12] Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10] - CVS Health currently holds a Zacks Rank of 3, suggesting a likelihood of beating the consensus EPS estimate [12] Historical Performance - CVS Health has consistently beaten consensus EPS estimates, achieving this in the last four quarters [14] - In the last reported quarter, CVS Health exceeded expectations by delivering earnings of $1.60 per share against an expected $1.36, resulting in a surprise of +17.65% [13] Market Reaction - The stock price may increase if earnings exceed expectations, while a miss could lead to a decline [2] - Other factors beyond earnings results may also influence stock movement, highlighting the complexity of market reactions [15]

Company Overview - CVS Health Corporation has a market cap of $105.4 billion and provides integrated health solutions through its Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness segments, offering health insurance, pharmacy benefit management, and retail pharmacy services nationwide [1] Stock Performance - CVS stock has significantly outperformed the broader market over the past 52 weeks, surging 53.8% compared to the S&P 500 Index's gain of 13.9% [2] - Year-to-date, CVS stock has risen 5.7%, while the S&P 500 Index has only gained 1.5% [2] - CVS shares have also outpaced the State Street Health Care Select Sector SPDR ETF's return of 9.6% over the past 52 weeks [3] Recent Financial Results - On October 29, CVS reported a Q3 2025 loss of $3.13 per share, primarily due to a $5.7 billion goodwill impairment charge related to its Health Care Delivery unit, resulting in a $3.2 billion operating loss compared to a profit the previous year [4] - The company has sharply cut its full-year 2025 EPS guidance to a loss of $(0.34) - $(0.24) from prior expectations of $3.84 - $3.94 [4] Future Earnings Expectations - For the fiscal year ending December 2025, analysts expect CVS' adjusted EPS to grow 22.7% year-over-year to $6.65, with a promising earnings surprise history [5] - Among 24 analysts covering the stock, the consensus rating is a "Strong Buy," based on 19 "Strong Buy" ratings, two "Moderate Buys," and three "Holds" [5] Analyst Ratings and Price Targets - The current analyst configuration is slightly less bullish than three months ago, with 20 "Strong Buy" ratings [6] - Bernstein raised its price target on CVS Health to $91 while maintaining a "Market Perform" rating, with a mean price target of $94.74, suggesting a nearly 13% premium to CVS' current price [6] - The highest price target of $105 indicates a potential upside of 25.2% [6]

Core Insights - Diebold Nixdorf has successfully supported the expansion of ROSSMANN into the Swiss market through a comprehensive model of retail technology solutions and services [1][2] - The partnership, initiated in 2021, has already facilitated the implementation of POS systems and self-service checkouts in over 2,350 stores in Germany, creating a successful operational blueprint for future expansions [2][4] - Plans are in place to connect additional devices to Diebold Nixdorf's eServices portal, enhancing the IT infrastructure of ROSSMANN stores [3] Company Overview - ROSSMANN, founded in 1972, is one of Europe's largest drugstore chains, employing 65,500 people and operating 4,966 stores [5] - In 2024, ROSSMANN generated sales of €15.3 billion across multiple countries, including Germany, Poland, and Switzerland [5] - Diebold Nixdorf operates in over 100 countries with approximately 21,000 employees, providing integrated solutions for banking and retail [6]

Core Viewpoint - Japanese retailers are increasingly relaxing their dress codes, particularly regarding hair color and personal grooming, in response to a tight labor market and competition for staff [2][5][6] Group 1: Retailers' Policy Changes - Don Quijote has relaxed its rules on hair and nail polish, with nearly 25% of its employees now sporting brightly colored hair, and 55% having non-black hair [2][3] - Fuji Yakuhin has eliminated many restrictions for non-pharmacist employees, allowing any hair color, nail art, and various types of rings [3] - Other companies, such as Tokyu Store supermarkets, have also reduced restrictions on hair colors, styles, accessories, and piercings [3] Group 2: Historical Context - Japan's gradual relaxation of dress codes began with the 2005 "Cool Biz" campaign, which encouraged more casual summer attire to reduce air conditioning costs [4] - Over the past two decades, many companies have moved away from strict uniform requirements, with some even making white gloves optional for taxi drivers [4] Group 3: Labor Market Dynamics - Japan's working-age population has decreased by 16% since 1995, leading to intense competition for staff, particularly affecting smaller companies that face acute labor shortages [6]

Core Insights - German drugstore retailer Drogeriemarkt (DM) is collaborating with French retail digitalisation company VusionGroup to implement the EdgeSense digital shelf platform as part of its digital transformation [1][3] - The EdgeSense system utilizes IoT, data analytics, computer vision, and AI to enhance store operations and staff workflows [1][4] - DM has over 93,000 employees and operates 4,200 stores across 14 European countries, with a recorded revenue of €19.19 billion ($22.11 billion) for the 2024–2025 financial year [4] Implementation Details - The collaboration currently involves 70 DM outlets, with 20 already utilizing the technology and plans for further rollouts [2] - The platform features LED shelf indicators to assist DM employees in efficiently locating products during order fulfillment [2] Strategic Goals - DM's chief information officer Roman Melcher emphasized the partnership's focus on exploring and developing digital solutions that accelerate strategic transformation [3] - The collaboration aims to improve customer interactions and operational efficiencies through intelligent digital solutions [4] VusionGroup Overview - VusionGroup collaborates with 350 retail groups across Europe, Asia, and North America [5] - In October 2025, British supermarket Morrisons partnered with VusionGroup to deploy 10.8 million smart electronic shelf labels across its 497 supermarkets [5]

Company Overview - CVS Health Corporation has a market cap of $104.6 billion and operates through Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness segments, providing health insurance, pharmacy benefit management, and retail pharmacy products [1] Stock Performance - CVS stock has surged 43.3% over the past 52 weeks, significantly outperforming the S&P 500 Index, which gained 18.3% during the same period [2] - Year-to-date, CVS stock has climbed 83.1%, compared to the S&P 500's 17.2% gain [2] - CVS shares have also outperformed the Health Care Select Sector SPDR Fund, which saw a 2.3% decline over the past 52 weeks [3] Financial Performance - In Q2 2025, CVS reported adjusted EPS of $1.81 and revenue of $98.92 billion, which were stronger than expected; however, shares fell marginally [4] - The company's GAAP earnings dropped to $0.80 per share from $1.41 a year earlier, and net cash from operating activities decreased to $6.45 billion from $7.99 billion [4] Future Outlook - Analysts expect CVS' adjusted EPS to grow 17.3% year-over-year to $6.36 for the current fiscal year ending in December 2025 [5] - CVS has a promising earnings surprise history, beating consensus estimates in the last four quarters [5] - The consensus rating among 25 analysts is a "Strong Buy," with 20 "Strong Buy" ratings, two "Moderate Buys," and three "Holds" [5] Analyst Ratings - Morgan Stanley analyst Erin Wright raised CVS Health's price target to $89 while maintaining an "Overweight" rating [7] - The mean price target of $86 represents a 4.6% premium to CVS' current price, while the Street-high price target of $103 suggests a potential upside of 25.3% [7]

Core Insights - CVS Health Corporation is set to report its second-quarter 2025 results on July 31, with adjusted earnings in the last quarter exceeding estimates by 31.58% [1] - The Zacks Consensus Estimate for second-quarter revenues is $93.72 billion, indicating a year-over-year growth of 2.7%, while earnings per share are expected to decline by 19.67% to $1.47 [2][7] Earnings Estimates - Earnings estimates for CVS Health have decreased from $1.58 to $1.47 per share over the past 90 days due to various operational and regulatory challenges [3] - The current earnings estimates for the upcoming quarters are $1.42 for the next quarter, $6.12 for the current year, and $7.00 for the next year [4] Operational Challenges - CVS Health faces operational cost pressures, legal challenges, and regulatory scrutiny, which have negatively impacted earnings estimates [4] - The company has incurred one-time charges totaling $1.082 billion, including $387 million related to the Omnicare verdict and $448 million in ACA-related reserves [4] Segment Performance - The Health Care Benefits segment is expected to generate revenues of $34.6 billion, with a focus on margin recovery through benefit redesigns and pricing changes [6][8] - The Pharmacy & Consumer Wellness segment is projected to achieve revenues of $32.16 billion, benefiting from increased prescription volumes despite reimbursement pressures [11][12] - The Health Services segment is estimated to generate $43.52 billion in revenues, supported by the performance of Caremark, CVS's pharmacy benefit manager [10][9] Stock Performance - CVS Health shares gained 2.5% in the second quarter of 2025, underperforming the S&P 500's 10.7% rise [13] - Compared to peers, CVS outperformed Herbalife and UnitedHealth Group, which saw declines of 2.2% and 40% respectively [13] Valuation - CVS Health's forward 12-month price-to-earnings (P/E) ratio is 9.24X, which is a premium compared to Herbalife's 4.51X but undervalued relative to UnitedHealth's 12.27X [16] Strategic Initiatives - CVS is implementing strategies to improve profitability, including redesigning Aetna benefits and enhancing drug pricing transparency through new PBM models [17] - The company is also optimizing its retail footprint and has plans to close over 20 pharmacies in Arkansas due to new regulatory laws [4][5]

Core Points - Walgreens Boots Alliance shareholders approved Sycamore Partners' $10 billion buyout offer, with the deal expected to close in the third or fourth quarter of 2025, pending regulatory approvals [2][5] - The buyout offer is priced at $11.45 per share, representing a 29% premium over Walgreens' stock price in December [3] - Approximately 96% of votes cast during the special shareholder meeting were in favor of the merger [4] Company Strategy - The CEO of Walgreens expressed appreciation for shareholder support, indicating that the partnership with Sycamore will help accelerate the company's turnaround strategy and improve customer and employee experiences [5] - Walgreens has faced challenges in recent years, including a failed in-store clinic rollout that resulted in store closures and significant financial losses [6] Financial Performance - Walgreens invested over $6 billion in VillageMD to gain a controlling stake, but has since scaled back on clinic expansions due to difficulties in filling patient panels, contributing to a net loss of over $8 billion for fiscal 2024 [7]

M&A Activity - Walgreens is being acquired by Sycamore [1] - The acquisition of Walgreens by Sycamore is viewed as hopeful [2] Company Performance - Walgreens reported a very good quarter [1] Market Competition & Trends - Amazon is considered a significant competitor in the drugstore market [4] - The acquisition of Walgreens may not positively impact CVS due to its smaller scale compared to CVS's other ventures [3]