CVS Health on Thursday said it will restore coverage of Eli Lilly‘s blockbuster weight loss injection Zepbound and start covering its new obesity pill on its standard drug plans – a win for the drugmaker and certain patients who will be able to access more treatment options.

CVS will add Zepbound coverage on Oct. 1, and start covering Lilly’s newly approved Foundayo pill on June 1. The move will boost Lilly’s efforts to maintain its dominance over Novo Nordisk in the blockbuster weight loss market, as it puts the two companies on equal footing on major drug plans.

It comes a year after CVS struck a deal with Novo Nordisk to make its drug Wegovy the preferred obesity treatment on its standard plans, while dropping coverage of Zepbound. That meant patients on those plans would have had to pay more out of pocket or go through extra hurdles to get Lilly’s drug. 

But GLP-1 medications from both Lilly and Novo will soon be co-preferred options on CVS Caremark’s standard commercial formulary template – a list of covered drugs that insurers and employers can choose to adopt – which represents 25 million to 30 million Americans. Caremark is one of the nation’s largest pharmacy benefit managers. 

Plan sponsors that adopt Caremark’s standard formulary can still opt out of covering GLP-1s for weight loss, so coverage of Lilly’s and Novo’s treatments isn’t guaranteed for all patients. 

Still, CVS expects the move to drive 10% to 15% additional savings across the weight management category. 

CVS on Thursday touted last year’s agreement with Novo Nordisk as the first move by a major pharmacy benefit manager to spur competition in the GLP-1 market and “bend the cost curve.” CVS said both Lilly and Novo responded by partnering with the healthcare giant to make GLP-1s for weight loss more affordable, pointing to “successful continued pricing negotiations” with both drugmakers. 

“With this expanded coverage, millions of Americans will have access to Zepbound and Foundayo, giving patients and their doctors a real choice in how obesity is treated,” Lilly said in a statement. “We’ll keep working to make that true for everyone.”

Lilly added that its pill will be covered by all three of the nation’s largest pharmacy benefit managers, including Caremark.

In a statement, Novo said it is “pleased” that the Wegovy injection and newly launched pill with the same name will retain their preferred status on CVS’ formularies. CVS Caremark patients can remain on those drugs “without interruption,” Novo added.

As a PBM, Caremark is hired by employers, government entities, unions and other health plans to negotiate the cost of medications included on formularies chosen by plan sponsors. 

“We’re creating access and options that would not have existed without our leadership in the market,” said Ed DeVaney, CVS Caremark president, in a release. “We acted boldly through active engagement and negotiation with our drug manufacturer partners to tackle affordability and access for our customers and their members.” 

CVS said Caremark will ensure a “smooth transition” to covered therapies for customers, consultants, providers and members. 

Kohl’s stock jumped more than 15% in premarket trading Thursday after the retailer reported its best comparable sales performance in four years.

CEO Michael Bender told CNBC the quarter marked the company “knocking on the door of growth.”

“We showed that we are managing the business with great discipline, strong expense management, our inventory is much cleaner than it’s ever been and the balance sheet continues to show strength,” Bender said.

The retailer said its net sales decreased 1.7% and its comparable sales slid 1.1% in its fiscal first quarter as it aims to turn around its business and regain market share. In the prior quarter, Kohl’s reported that comparable sales dropped 2.8% from the previous year.

Here’s how the company performed in its fiscal first quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

• Loss per share: 13 cents vs. 19 cents expected
• Revenue: $3 billion vs. $2.99 billion expected

For the period ended May 2, Kohl’s reported a net loss of $14 million, or 13 cents per share, compared to a net loss of $15 million, or 13 cents per share, the year prior. Revenue declined from $3.05 billion to $3 billion.

Kohl’s reaffirmed its full-year outlook, expecting net sales and comparable sales to be in a range of down 2% to flat. It expects adjusted earnings per share of between $1 and $1.60.

“We’re not done,” Bender told CNBC on Thursday. “I think it’s really important to underscore that as well, that we love the trajectory of where things are headed, but we know we still have a lot of work ahead of us.”

Bender said the retailer saw “meaningful improvement” in its Kohl’s card customer as well as its proprietary brand. Because the company’s main audience is lower- and middle-income shoppers, Bender said pressures like high gas prices and sustained inflation are affecting Kohl’s strategy.

“There are families are sitting around the kitchen table right now, trying to make life work, particularly amid the backdrop context of higher energy prices, labor market challenges, and it just means that we have to continue to lean into value more and more and more,” Bender said.

The company is also working on improving the store experience and managing inventory to help customers find what they want with more ease.

Kohl’s has been struggling with declining sales, coupled with macroeconomic pressures, leading the stock to dive over 35% this year as of Wednesday’s market close.

The company also confirmed to CNBC that it has applied for tariff refunds and is eligible for more than $100 million in returns, though Kohl’s has not yet received any money back.

Best Buy on Thursday reported fiscal first-quarter results that beat expectations on the top and bottom lines as the electronics retailer tries to break out of a sales slump.

The company said revenue climbed slightly, driven by comparable sales growth of 2%. It reaffirmed its full-year guidance of revenue between $41.2 billion and $42.1 billion, in addition to adjusted earnings per share of $6.30 to $6.60. It expects comparable sales in the range of a decline of 1% to an increase of 1%.

The company said its biggest growth drivers in the quarter were gaming, computing, mobile phones and services, which were partially offset by a decline in sales of appliances.

Shares of Best Buy rose 7% in premarket trading.

“Our comparable sales grew 2% versus last year, higher than our outlook, with positive comps across the majority of our major product categories and strong performance in our Best Buy Ads and Marketplace initiatives,” CEO Corie Barry said in a release. “We also drove operating income rate expansion and EPS growth.”

More retailers including Walmart and Target have leaned into advertising and third-party marketplace businesses, which offer sales growth with higher profit margins than their traditional merchandise does.

Here’s how Best Buy performed in its fiscal first quarter compared with what Wall Street was expecting, according to a survey of analysts by LSEG:

• Earnings per share: $1.28 adjusted vs. $1.23 expected
• Revenue: $8.94 billion vs. $8.83 billion expected

For the period ended May 2, Best Buy reported net income of $276 million, or $1.31 per share, up from $202 million, or 95 cents per share, in the year-ago period. Revenue rose slightly to $8.94 billion from $8.77 billion the prior year. Excluding one-time expenses, including charges incurred for restructuring its health business, Best Buy reported adjusted earnings per share of $1.28 per share.

The earnings come just over a month after the company named Jason Bonfig as its new CEO, succeeding Barry in the fall. The leadership change was part of Best Buy’s efforts to increase sales and accelerate its business.

“With this momentum, I believe it is the right time to transition the leadership of Best Buy, and step down as CEO later this year,” Barry said in a statement Thursday.

Bonfig said in the Thursday release that he’s focused on expanding the company’s reach and elevating the experience for customers as he prepares to take the helm on Nov. 1.

Best Buy has been struggling with a sales slump, taking additional hits from higher tariffs and lower consumer confidence. Last quarter, Barry said the company was seeing a divergence in higher-income shoppers and lower-income shoppers, with softness in higher-cost item sales.

In a country where big trucks are a big deal, those pickups and SUVs represent a big percentage of auto loans that come with a sizable monthly payment, more than $1,000 a month, according to new data.

Experian Automotive’s analysis of more than 5 million open auto loans and leases in the first quarter shows nearly 19% of new vehicle loans include a monthly payment of at least $1,000. That’s up from roughly 17.4% year over year.

“The assumption is that it’s all luxury, it’s high-line, and that is not the case,” said Melinda Zabritski, head of automotive financial insights for Experian Automotive.

Almost 74% of the auto loans requiring owners to pay $1,000 or more every month are for non-luxury models, with the top five models being popular pickup trucks including the Ford F-150, Chevrolet Silverado 1500 and Ram 1500, according to Experian.

Just five years ago, auto loans with monthly payments over $1,000 accounted for just 5.4% of the market. Then the global chip shortage hit in 2021 and 2022, and automakers around the world prioritized production of higher-end, more profitable models. Vehicle prices soared, and so did the amount borrowed for auto loans.

Zabritski said those higher prices have changed how car and truck buyers look at what it takes to finance the purchase of a new vehicle.

“We haven’t seen a reduction in that MSRP, and in those high loan amounts,” she told CNBC. “I think as time goes on, I think more consumers are getting used to the $1,000 payment.” 

The average amount borrowed is now at an all-time high of $43,952, and the average monthly payment has also climbed to an all-time high of $770, according to Experian Automotive. Both are a reflection of a new auto market that is relatively strong.  

As for auto loan delinquencies, the percentage of loans that have payments more 30 days late has edged up to 2% of all new vehicle loans, with the 60-day delinquency rate also increasing.  

Still, Zabritski noted that delinquency rates remain below 2018 levels. 

“The driving force in the 60-day delinquency really does fall within the subprime market. Lower credit scores are going to have a higher likelihood of default,” she said.