Major U.S. pharmacy chain Walgreens plans to close more than 1,200 “poor-performing” stores in the U.S. over the next three years, the company announced Tuesday.

According to its fourth-quarter 2024 earnings report, Walgreens reported a quarterly loss of $3 billion despite sales increasing 6% year-over-year.

The Deerfield, Illinois-based company, which currently operates about 8,600 stores in the U.S., will close about one in seven locations by 2027. About 500 of those stores will close over the next year, but exact locations were not disclosed in the earnings report. Walgreens said it would prioritize closing stores when its lease expires.

“This turnaround will take time, but we are confident it will deliver significant financial and consumer benefits over the long term,” said Walgreens CEO Tim Wentworth.

Shares of Walgreens (WBA) were up around 13.2% at $10.18 as of midday trading Tuesday. However, the company’s stock has fallen nearly 62% for the year.

Walgreens’ announcement that it will close 1,200 stores comes four months after the company said in June it would close a “significant percentage” of underperforming stores. At the time, Wentworth said about a quarter of Walgreens stores were not profitable.

“We recognize that we are in a reversal,” Wentworth told The Wall Street Journal in June. “We recognize that we need to focus on the parts of the business that we believe have a contribution and a future, and some of those need to change.”