STORY: Shares of Walgreens Boots Alliance lost as much as a quarter of their value Thursday morning after the company cut its profit forecast for the current fiscal year and said it would close more underperforming stores.

It also posted quarterly earnings that missed expectations.

The pharmacy chain operator said it could shutter a quarter of its U.S. locations.

CEO Tim Wentworth, who came on board last October, has set in motion a complete overhaul at Walgreens through store closures, the removal of multiple mid-level executives and a $1 billion cost-cutting plan.

Earlier this year, Walgreens halved its dividend to 25 cents per share in an attempt to conserve cash as sticky inflation dampens spending on over-the-counter products and pressure increases on reimbursement payments for filling prescriptions.

One analyst called the results "absolutely terrible," though he said he is taking a wait and see approach on the new CEO's plans.

The company's outlook also hit shares of rival CVS which fell as much as six percent Thursday morning.