Pharmacy Giant Gets a Private Prescription

A pharmacy giant is set to go private in a $10 billion buyout, a business solutions firm is rising on improved profitability, and a footwear chain is tumbling after missing earnings estimates and issuing a weak sales forecast for 2026. Read on to find out more.

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What to Watch

Earnings:

• None Scheduled

Economic Reports:

• U.S. jobs report [Feb]: 8:30 a.m.

• U.S. unemployment rate [Feb]: 8:30 a.m.

• U.S. hourly wages [Feb]: 8:30 a.m.

• Fed Governor Michelle Bowman will speak at 10:15 a.m.

• New York Fed President Williams will speak at 10:45 a.m.

• Fed Governor Adriana Kugler will speak at 12:20 p.m. 

• Fed Chairman Jerome Powell will speak at 12:30 p.m.

For Bot Only

Pharmacy

Sycamore Acquires Walgreens in $10 Billion Deal, Plans Major Overhaul

Walgreens Boots Alliance (NASDAQ: WBA) is set to go private after agreeing to a $10 billion buyout by Sycamore Partners.

The deal, announced last evening, brings an end to Walgreens’ nearly century-long presence on public markets.

Under the agreement, Sycamore will pay $11.45 per share, representing an 8% premium over Walgreens’ closing price of $10.60 on Thursday.

The company’s stock is up nearly 6% in early trading.

Additionally, Walgreens shareholders may receive an extra $3 per share based on the future monetization of its interests in VillageMD.

Once valued at $100 billion in 2015, Walgreens has faced years of declining profits, shrinking margins, and increased competition from Amazon and Walmart.

While competitors expanded into health insurance and pharmacy benefits management, Walgreens invested heavily in physical retail acquisitions, a move that failed to counteract the shift toward online shopping.

The deal values the company’s total obligations at $23.7 billion, including its $30 billion in debt and lease liabilities.

Sycamore, known for acquiring struggling retailers like Staples and Talbots, is expected to restructure the company, potentially through store closures and asset sales.

Walgreens CEO Tim Wentworth said the company remains committed to its turnaround strategy but acknowledged that meaningful value creation would be more manageable as a private entity.

The transaction includes a 35-day go-shop period, though analysts believe a competing bid is unlikely.

Business Solutions

Advantage Solutions Reports Higher Q4 EBITDA Despite Revenue Decline

Advantage Solutions Inc. (NASDAQ: ADV) released its fourth-quarter and full-year 2024 earnings, reporting a decline in revenue but an increase in adjusted EBITDA.

For the fourth quarter, revenue is down to $892.3 million from $991.9 million in the same period last year.

The company reported a net loss of $177.9 million, significantly widening from the $2.7 million loss recorded a year ago.

For the full year, revenue is down to $3.57 billion from $3.90 billion in 2023, with the net loss expanding to $378.4 million from $81.2 million.

Despite lower revenue, adjusted EBITDA has improved, rising 8.9% in Q4 to $94.6 million. This is causing its stock to rise nearly 5.5% in early trade.

For the full year, it increased 1.1% to $356 million, with adjusted EBITDA margins reaching 10.6% in Q4 and 10% for the year.

CEO Dave Peacock emphasized the company’s progress in operational improvements and resilience in a shifting market.

Looking ahead, Advantage Solutions expects revenue and adjusted EBITDA to grow in the low single digits in 2025.

The company also projects free cash flow conversion above 50% of adjusted EBITDA, with net interest expenses between $140 million and $150 million.

Capital expenditures are expected to range from $65 million to $75 million.

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Footwear Retail

Genesco Falls Short of Estimates, Warns of Flat Sales Growth in 2026, Shares Tumble

Genesco Inc. (NYSE: GCO) reported fourth-quarter earnings and revenue below analyst expectations, triggering an 8% drop in its stock during premarket trading.

The footwear retailer also issued a weaker-than-expected outlook for the next fiscal year, raising concerns about continued headwinds.

For the quarter ending February 1, adjusted earnings per share are at $3.26, slightly below the $3.30 analysts had anticipated.

Revenue reached $746 million, falling short of the projected $780.43 million.

Looking ahead to fiscal 2026, Genesco forecasts earnings per share between $1.30 and $1.70, significantly lower than the $2.35 analysts had expected.

The company also projects a total sales growth of 0% to 1%, indicating a sluggish retail environment.

Despite the earnings miss, the company pointed out some positive trends, including a 10% rise in comparable sales.

E-commerce sales are also seeing an 18% jump, accounting for 30% of total retail revenue. The Journeys brand is a standout performer, posting a 14% increase in comparable sales.

The company ended the quarter with 1,278 stores, down from 1,341 the previous year, as it continues to streamline its retail footprint. Inventory levels increased by 12% year-over-year.

GEN Restaurant Group, Inc. [GENK] - Last Close: $5.09

GEN Restaurant Group is a Korean and Korean-American casual dining chain.

Its shares are rising in premarket trade after its Q4 results showed a strong revenue beat, rising 21% year-over-year to $54.7 million and surpassing analyst expectations.

The company also returned to positive comparable sales in Q1 2025 and plans to open 10-13 new locations, including in South Korea.

Gap, Inc. (The) [GAP] - Last Close: $19.48

Gap, Inc., is surging nearly 19% after hours as the retailer delivered a strong holiday-quarter profit, far exceeding expectations.

Sales grew across key brands like Old Navy, Banana Republic, and Gap, with the latter seeing a 7% same-store sales increase, signaling a successful turnaround strategy.

Noodles & Company [NDLS] - Last Close: $1.25

Noodles & Company is a fast-casual restaurant chain that specializes in noodle dishes.

Its shares are rising 15% in early trade after reporting a stronger-than-expected 2025 revenue outlook, despite posting a wider Q4 loss.

The company expects $503M-$512M in revenue for the year, surpassing analyst estimates, and has reported over 3% comparable sales growth in early Q1 2025.

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Everything Else

• Strong earnings and AI demand push Broadcom shares higher.

• Costco’s Q2 results show growth despite mixed earnings and rising costs.

• Evergrande’s annual profit is expected to drop by up to 37% amid financial strain.

• The TAP airline sale is likely postponed as Portugal heads toward snap elections.

• Samsara’s stock falls amid mixed sentiment despite an earnings beat.

• HPE announces 3,000 job reductions and lower profit outlook; shares drop as a result.

• The Cooper Companies posts steady Q1 earnings while facing mixed revenue performance.

• Guidewire’s stock rises after posting an impressive Q2 revenue increase despite a slight EPS miss.

That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.

Best Regards,

— Adam Garcia
Elite Trade Club

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