Walgreens executive says 'maybe we cried too much last year' about theft

Walgreens earnings beat estimates as early flu season helps drive sales

A top Walgreens executive on Thursday acknowledged the company may have overblown concerns about thefts in their stores after shrinkage stabilized over the last year. 

During an earnings call, the company’s chief financial officer, James Kehoe, said shrinkage was about 3.5% of sales last year but that number is now closer to the “mid twos.” He also said the company would consider moving away from hiring private security guards.

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“Maybe we cried too much last year,” Kehoe said. “We’re stabilized,” he added, saying the company is “quite happy with where we are.” 

Shrinkage is the difference between a company’s recorded inventory on their balance sheet and its actual inventory. It primarily accounts for items that were shoplifted but also includes inventory that was damaged, lost or stolen by employees.

Over the last two years, Walgreens has been raising the alarm about increased theft. As a result, it hired private security guards and locked up merchandise so it can’t be accessed without a store associate. 

Anti-theft locked beauty products with customer service button at Walgreens pharmacy, Queens, New York.

Lindsey Nicholson | Universal Images Group | Getty Images

Kehoe said the company has spent a “fair amount” to crack down on the thefts but acknowledged the private security companies they’ve hired have been “largely ineffective.” These guards can do very little but call law enforcement or hold a suspect until police arrive. 

“We’ve put in incremental security in the stores in the first quarter. Actually, probably we put in too much. We might step back a little bit from that,” said Kehoe. The company is using more law enforcement as opposed to private security, he added.

A Walgreens spokesperson declined further comment on the matter.

Other retailers, such as Walmart and Target, have said recently shrinkage remains a growing concern. 

Walmart CEO Doug McMillon claimed he might have to close stores and raise prices if the problem doesn’t get under control. Target claimed in its last earnings report that it recently lost $400 million from shrinkage

Earlier Thursday, Walgreens released its fiscal first-quarter earnings. It beat Wall Street’s estimates after an early flu season boosted demand for cough and cold medicine, but also reported $3.7 billion in losses after the pharmacy chain agreed to pay a hefty $5.2 billion settlement related to opioid litigation.

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Biden Announces New Border Measures to Curb Unlawful Migration to US 

USA – Voice of America 

U.S. President Joe Biden announced Thursday measures to crack down on migrants seeking to enter the United States without authorization from Mexico while offering a new pathway to legal entry for up to 30,000 people a month from Venezuela, Nicaragua, Cuba and Haiti.

The measures will make it easier for border authorities to quickly expel migrants who enter the U.S. between legal crossing points and revive country agreements where would-be asylum-seekers, who passed through a third country, must show they failed to receive protections there before asking for asylum at the U.S.-Mexico border.

However, individuals in the four named countries will be allowed to apply for legal entry to the United States from abroad under the humanitarian parole authority now being used to admit some refugees from Afghanistan and Ukraine.

Biden officials touted the plan as a pathway to legally allow migrants to travel to the U.S. in an orderly, safe manner. But immigration advocates countered that the policies inappropriately limited asylum protections guaranteed under U.S. and international law.

During a news conference at the White House, Biden said the humanitarian parole measure would allow migrants from Nicaragua, Cuba and Haiti who have U.S.-based financial sponsors to legally enter the country through a program modeled on the Ukraine program and an earlier Venezuelan program. Those programs allow migrants to travel by air to the U.S. if they have sponsors and pass background checks.

“These actions alone that I’m announcing today aren’t going to fix our immigration system, but they can help us a good deal. … I can only act where I have the legal capacity to do so,” Biden said.

The humanitarian parole authority allows the approved applicants to live and work legally in the U.S. temporarily.

In response to the announcement, Krish O’Mara Vignarajah, president and CEO of Lutheran Immigration and Refugee Service, said in a statement that humanitarian parole cannot be a replacement for asylum protections.

“It will provide only temporary protection to a small subset of the millions of people forced to flee their homes. Far more concerning is the expansion of Title 42 expulsions that will now apply to more people seeking to exercise their legal right to seek asylum,” she said.

Title 42 is a public health policy that allows for the immediate expulsion of migrants during public health emergencies. But there were exceptions that allowed migrants from Venezuela, Nicaragua, Cuba and Haiti to be processed into the U.S. Under the new plan, if they arrive at the southwestern border, they will instead be returned to Mexico.

The use of the health order, which immigration advocates say is no longer needed, created a backlog in Mexico of migrants seeking asylum in the U.S.

In various reports, U.S. border officials and immigration advocates say the larger numbers of migrants at the border reflect the deteriorating economic and political conditions in some countries that drive people to come to the southwestern border of the U.S.

Other Biden officials also briefed reporters Thursday, on the condition that their names not be used as is common in White House briefings, saying the humanitarian pathway will keep migrants from making the dangerous journey to the U.S. border.

However, the plan has a limit of 30,000 total admissions each month.

“Currently, these four countries accounted for most of the people traveling into Mexico to start a new life by getting to the American border and trying to cross,” Biden said.

The new initiative includes efforts to discourage unlawful entries along the southwestern border.

U.S. Homeland Security Secretary Alejandro Mayorkas said in a news conference with reporters that “effective immediately” migrants would be “swiftly sent back to Mexico.”

“The border is not open,” Mayorkas said, adding that border officials would increase the use of expedited removal.

A migrant is fast-tracked for removal if a U.S. immigration officer concludes the person does not have a valid asylum claim, a determination made without the migrant appearing before an immigration judge. Unaccompanied children who cross the border into the United States are exempted from the policy.

Mexico has agreed to accept up to 30,000 migrants a month who do not qualify for the humanitarian program.

How program will work

According to Biden officials, a migrant requesting humanitarian parole will have to file an applications with Customs and Border Protection through the CBP One app, submit proof of an eligible sponsor and and pass a background check to receive authorization to travel to the United States.

For two years, the beneficiaries of the parole program will have legal status and be allowed to legally work in the U.S.

Biden and Mayorkas made a point to say that after Thursday’s announcement, individuals who cross Panama and Mexico to get to the U.S. border and cross without authorization will not be eligible for the parole process and will be subject to immediate expulsion.

At Thursday’s news conference, Mayorkas said there would be discretion but did not elaborate on what exceptions — still to be written — might be granted.

Mayorkas said migrants who “circumvent available established pathways to lawful migration and also failed to seek protection in a country to which they traveled on their way to the United States” would be ineligible for asylum in the United States.

“Unless they meet exceptions that will be specified, individuals who cannot establish a valid claim to protection under the standard set out in the new rule will be subject to prompt removal under Title 8 authorities, which carries a five-year ban on re-entry,” he said.

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Jonathan Blazer, director of border strategies at the American Civil Liberties Union, said in a statement that Biden recognized that seeking asylum is a legal right, but the plan continues to tie the current administration to anti-immigrant policies instead of restoring access to asylum protections.

“President Biden explicitly condemned [former President Donald] Trump’s asylum ban against people who travel through other countries and made a campaign promise to end it and restore our asylum laws. But today the White House announced that he plans to bring a version of that ban back,” Blazer added.

Other immigration advocates criticized the sponsorship requirement for those seeking asylum.

Austin Kocher, an assistant professor and researcher with the Transactional Records Access Clearinghouse at Syracuse University, told VOA the Biden administration is understandably under pressure to create a sense of control at the border.

“But adding conditions and barriers to the asylum process that are not part of U.S. and international law contradicts Biden’s claims that he would be different than his predecessor,” he said.

Mayorkas and other immigration officials rebutted that claim.

“This has no resemblance to the transit ban that was imposed in the Trump administration because we have built lawful pathways. We do have a way for asylum-seekers to seek relief at the ports of entry. We will, of course, have exceptions for humanitarian reasons when individuals cannot avail themselves of the CBP One application. So, this is quite, quite different,” Mayorkas said.

Biden is scheduled to travel to El Paso, Texas, this weekend. It will be his first trip to the southwestern border as president. He said he waited to see what was going to happen to Title 42, which is tied up in a case before the U.S. Supreme Court, before he decided to visit the border.

“I wanted to make sure that I knew what the outcome or at least the near outcome was on Title 42 before I went down [to the border]. We don’t have that yet. So I had to operate. I don’t like Title 42, but it’s the law now and we have to operate within it,” Biden said.

The president is traveling to Mexico City to meet with North American leaders on Monday after his El Paso visit.

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BofA top banker Rick Sherlund predicts 2023 tech comeback, delivers bullish software call

US Top News and Analysis 

In this article

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BofA banker Rick Sherlund predicts tech optimism comeback after earnings season

Bank of America top banker Rick Sherlund sees a major market shift ahead.

According to Sherlund, optimism surrounding technology stocks will make a comeback this year — but the key is to weather the upcoming earnings season first.

“What we need to do is de-risk 2023 numbers,” the firm’s vice chair of technology investment banking told CNBC’s “Fast Money” on Thursday. “When we go through fourth quarter earnings, I think companies will indicate a reduction in force. They’ll talk about cutting back on go-to-market spending… This is all encouraging.”

Sherlund’s expertise is software. He hit No. 1 on Institutional Investor’s all-star analyst list 17 times in a row when he was an analyst.

And, he’s known for leading Goldman Sachs’ technology research team through the 2000 dot-com bubble, a time he calls “breathtaking.” The latest market backdrop reminds him of prior downturns.

“2022 was a terrible year for these [software] stocks,” said Sherlund. “We’ve seen tremendous compression in valuation. The good news is that downturns are ultimately followed by upturns. So, we’ve just got a lot of crosscurrents near-term.”

His latest market forecast coincides with the tech-heavy Nasdaq‘s latest struggles. It fell 1.47% to 10,305.24 on Thursday, and it’s on the cusp of a five-week losing streak.

Sherlund’s base case is the move to high-growth areas such as the cloud will provide a long-term boost to software stocks.

“People have to recognize that this is an economically sensitive sector,” he said. “Some of the demand may have been pulled forward during the pandemic period and when rates were zero.”

Sherlund contends powerful secular tailwinds will ultimately lift the group. And, it should help kick off consolidation in the form of mergers and acquisitions in the year’s second half.

“There will be an inclination to pick up the phone and have that M&A conversation where in the past it was probably little incentive to do that,” said Sherlund. “There’s an awful lot of dry powder out there.”

He believes stability later this year in the Federal Reserve’s interest rate hike trajectory will spark deal-making by helping the challenged leveraged finance market.

“That could finance a lot more M&A and LBOs [leveraged buyouts],” Sherlund said.

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Ducks’ Trevor Zegras steals opponent’s stick out of desperation, unknowingly takes penalty

Latest & Breaking News on Fox News 

Trevor Zegras sure knows how to keep things interesting.

The Anaheim Ducks star made national headlines last year with his alley-oop assist to Sonny Milano, and he’s provided plenty other viral moments with his masterful puck handling.

His skills put him on the cover of NHL 2K23. On Wednesday night, he lost a handle of his stick, so he literally took matters into his own hands.

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Zegras’ stick broke while he was fighting for a puck with the Dallas Stars’ Joel Kiviranta. Behind his own net, Zegras needed a stick to play defense. So, he stole Kiviranta’s out of his hands.

“My stick broke, and I pinned him up against the glass. I was like, ‘You know what, I’m just gonna steal his stick,'” he said after the game.

There’s just one problem with that, though. It’s against the rules. But Zegras had no idea.

“Everyone knew it was a penalty but me, I guess,” Zegras added.

The 21-year-old was assessed a two-minute penalty for an illegal stick.

“I tried to claim that I found it on the ice, which nobody was buying,” he admitted.

The penalty didn’t hurt the Ducks, though. They scored a 2-0 victory at the Honda Center in Southern California.

Zegras also dished out an assist in the game, his 19th of the season. He’s also scored 10 goals and owns the NHL’s second-best shootout percentage of all time. Despite his flashiness, the Ducks’ 26 points (11-24-4) are the third-lowest in the NHL.

 

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Wisconsin woman allegedly attempted to kill husband with animal euthanasia drugs: reports

Latest & Breaking News on Fox News 

A Monroe, Wisconsin, woman was charged with attempted first-degree murder after being accused of poisoning her husband, who works as a veterinarian, with animal euthanasia drugs several times, according to reports.

Amanda Chapin, 50, was arrested by the Lafayette County Sheriff’s Office and charged on Dec. 28, the Associated Press reported, after authorities said she poisoned her 70-year-old husband Gary Chapin, three times by putting barbiturates in his coffee, between July and August.

The couple was married in March, after which Amanda Chapin forged one of Gary’s children’s signatures on a power-of-attorney document, according to a criminal complaint.

WI MAN GETS LIFE PLUS 120 YEARS FOR RELATIVE’S AX MURDER

The complaint then says she demanded her husband change the deed of the house so if he died, she would get the home. Less than three weeks after the deed was changed, the complaint reads, she poisoned her husband for the first time.

Gary Chapin fell into a coma after Amanda’s third attempt to poison him with barbiturate-enhanced coffee, which lasted for four days, and the complaint says blood work exhibited that the drugs were the same type he used to put animals down.

In August, Gary Chapin’s son filed a restraining order against Amanda Chapin on his father’s behalf and in September he began the process for divorcing his wife, according to court documents.

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AP reported that according to the criminal complaint, Amanda Chapin violated the restraining order by sending her husband a suicide note in an email.

In the note, Amanda Chapin said she decided to kill herself because his children were going to destroy her.

“The only thing I am guilty of is loving you SOOOOOOOOOO MUCH,” the note, which was included in the complaint, said.

Paramedics responded to her house and took her to a local hospital, and the next day Gary Chapin filed for divorce.

 

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Goldman Sachs reveals 7 under-the-radar global stocks to buy this year

US Top News and Analysis 

Many under-the-radar stocks are key to a green energy transition, according to Goldman Sachs — and it expects them to take off in 2023. The Wall Street bank said investor focus on large renewable energy and energy efficiency stocks in previous years means that companies further down the supply chain have been overlooked. “There is growing recognition that ESG [environmental, social and governance] fund assets are highly concentrated in market-weight positions in market bellwethers and overweight positions in obvious thematic winners,” said Goldman Sachs analysts in a note to clients on Jan. 3. The decade-long trend is likely to reverse this year, the bank said, as focus turns to companies in sectors such as semiconductors, electricity transmission, and cybersecurity which “provide critical components” needed for a transition toward clean energy. “We have received positive feedback that investors will look for discovery value and broaden to other sectors important in the supply chain of achieving environmental/social goals,” the analysts added. Despite much talk of a transition away from burning highly polluting energy sources, the world’s fossil fuel dependency continues . However, Goldman said there was a “growing urgency to accomplish key Sustainable Development goals,” given the pressure on energy supplies following Russia’s invasion of Ukraine. As such, the bank identified the following buy-rated stocks in the Europe, Middle East, and Asia regions it expects to benefit: ASML Heavy engineering firms such as SSAB , Vinci , Siemens , and chip toolmaker ASML — which all appear on Goldman’s list — are expected to see their shares rise by more than 10% over the next year, according to the median average of analyst price targets compiled by FactSet. Shares of ASML are expected to rise the most by 29.3% to 700 euros ($742), the data shows. The stock has fallen by 23% over the past year and was trading at around 570 euros on Thursday. The company, which produces photolithography machines used to make chips, is key to the proliferation of electric vehicles as they’re dependent on a large number of semiconductors to operate. The US-traded Dutch company is also buy-rated by UBS and Bank of America. Both banks see the firm as the “most preferred” stock in the semiconductor sector for 2023.

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Jeremy Renner ‘completely crushed’ under snowplow and ‘bleeding heavily from his head’: 911 call log reveals

Latest & Breaking News on Fox News 

Jeremy Renner was “completely crushed” underneath a snowcat and had difficulty “breathing” after he was involved in a snowplow accident on New Year’s Day, according to a 911 call log obtained by Fox News Digital.

Renner was airlifted to a local hospital and had surgery after suffering blunt chest trauma and orthopedic injuries. He was reportedly the “only involved party in the incident” near his home in Lake Tahoe.

Dispatch reported a subject was “moaning loudly in the background” of a call at 8:58 a.m. where “serious bleeding” was recorded. Seconds later dispatch wrote, “subject is bleeding heavily from his head and other unknown injuries.”

It was also noted the caller wasn’t sure “where all the blood is coming from.” Additionally, the log stated that it’s believed Renner’s “right side of his chest is collapsed” and “upper torso is crushed.”

Deputies responded to reports of a traumatic injury near Mt. Rose Highway, located near the California/Nevada state line on Sunday, Jan. 1.

JEREMY RENNER SHARES ‘ICU SPA MOMENT AFTER SNOWPLOWING ACCIDENT: ’THANK YOU MAMA’

Washoe County Sheriff Darin Balaam shared in a press conference Tuesday that deputies responded to a 911 call at 8:55 a.m. Sunday. 

“Jeremy is making positive progress and is awake, talking and in good spirits,” Renner’s representative told Fox News Digital Tuesday. “He remains in ICU in critical but stable condition. He is overwhelmed by the showing of love and support. The family asks for your continued thoughts while he heals with his close loved ones.”

JEREMY RENNER SHARES PHOTO FROM HOSPITAL BED AFTER SNOWPLOW ACCIDENT: ‘THANK YOU FOR ALL YOUR KIND WORDS’

The Avenger’s star shared a selfie on Instagram following a traumatic injury after an accident on New Year’s Day.

“Thank you all for your kind words,” he wrote. “Im too messed up now to type. But I send love to you all.”

 

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Extreme California storm causes deadly flooding affecting elderly communities, local businesses

Latest & Breaking News on Fox News 

As the bomb cylcone continues to batter Central California, coastal areas up and down the state are facing forced evacuations, closed roadways, and severe property damage.

The storm was powered by two overlapping immense weather systems- an airborne stream of dense moisture flowing off the ocean called an atmospheric river, and a sprawling, hurricane-force low-pressure system known as a bomb cyclone.

Santa Cruz County has taken a particular hard beating from the “atmospheric storm”, with a mandatory evacuation order from county officials lifting on Thursday afternoon after the storm pummeled neighborhoods bringing major flooding to residents’ homes as well as torrential downpours. 

SEE SOME OF THE MOST CATASTROPHIC ATMOSPHERIC RIVERS AND FLOODING IN CALIFORNIA HISTORY

“It came out of nowhere – we have a small creek, and it just was five feet over flood stage within a matter of an hour because of the runoff. It was devastating because people were sitting in their homes.” Mayor of the City of Watsonville, Ari Parker told Fox News Digital. “They had no prior knowledge of what happened, and they had people call them. We looked outside and water is covering their car in the street and water is streaming into their homes.”

Many of Santa Cruz County’s senior population lives in Watsonville, where flooding was especially catastrophic.

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“I work with a very fragile population in my day-to-day work, and I understand when an emergency like this happens, especially for people that are seniors and are medically fragile, that this is a major issue because some of these people cannot move.” Watsonville City Councilman Casey Clark told Fox News Digital. Clark also manages adult mental health inpatient facilities locally. “When I got the phone call that the flooding was happening, myself and a group of my friends, we just dropped everything and drove through knee-high water to get to people and start sandbagging their houses and seeing if anybody needed any help to get out or to get to their loved ones.”

According to Santa Cruz County, the storm caused at least $10 million in damages to roads and infrastructure. The county says the damage estimate could rise as they continue to assess damage.

Businesses in California have also suffered tremendously from the “atmospheric storm” and bomb cyclone with many businesses reporting extensive property damage.

BOMB CYCLONE, ‘PINEAPPLE EXPRESS’ TRACKER: LATEST DATA ON STORM’S PATH ACROSS CALIFORNIA

“This has been a challenge for everybody; a bigger challenge for some than others. But we’re all doing, I think, the best we can.” Ted Burke, owner of Shadowbrook Restaurant in Capitola told Fox News Digital. “We will all recover from this. Coming storms don’t last forever and the sun will shine again this summer.”

Authorities have reported at least two weather-related deaths from the latest storm this week. 

A tree crashed onto a home overnight killed a 1-year-old baby boy, and a 19-year-old woman died when her car skidded off a partially flooded road into a utility pole on Wednesday.

Over New Year’s weekend, four other deaths were reported, with three flood victims found in or near their cars and an elderly man found dead under a fallen tree.

As many as 130,000 homes and businesses were without power on Thursday evening, according to Poweroutage.us.

 

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Maker of OXO and Osprey is laying off 10% of staff


New York
CNN
 — 

Helen of Troy, which owns OXO and Osprey among other consumer goods and beauty brands, is laying off 10% of its staff, in the face of sluggish demand and economic uncertainty.

“The new structure will reduce the size of our global workforce with impact across all business segments, departments and shared services,” said COO Noel Geoffroy during an analyst call Thursday. “We did not take this decision lightly.”

Most of the layoffs will be completed by March 1, the company said, with the remainder by the end of fiscal year 2024. They are part of an effort to streamline the organization and reach $75 to $85 million in annualized savings in the coming years.

The company joins several others that have recently announced workforce reductions. Amazon said Wednesday it plans to lay off more than 18,000 employees. Salesforce is planning to cut about 10% of staff and reduce its real estate footprint.

An employee secures a pallet of merchandise at Helen of Troy distribution center in Olive Branch, Mississippi, in March 2014.

For consumer goods makers like Helen of Troy, reduced demand from people cutting back on spending because of inflation and other pressures has been a challenge. In November, US consumer confidence fell to the lowest level since July.

Net consolidated sales at Helen of Troy dropped 10.6% in the three months ending November 30, compared to the same period the year before, the company said Thursday. Shares fell about 6% Thursday.

“During the third quarter, consumers continued to tighten their purchasing patterns in some categories in response to high inflation and higher interest rates,” said CEO Julien Mininberg during the call.

The slowing demand has impacted retailers, who are trying to manage their stock.

“As consumption slowed, some retailers continued their conservative repurchase patterns to further reduce their inventory,” Mininberg said, adding that “the holiday season started off slower than expected with discretionary categories generally under pressure from these trends.”

Helen of Troy’s brands include Hydro Flask and Osprey, as well as a number of health and wellness brands like Honeywell and Pur. In the beauty segment, it owns Drybar and Hot Tools, which sells curling irons and other hair tools.

Correction: An earlier version of this story and photo caption incorrectly listed some brands Helen of Troy licenses but does not own, which are unaffected by these layoffs.

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Leon Cooperman says new bull market isn't coming anytime soon, but he's finding cheap stocks to buy

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