Rite Aid reports mixed Q2 results

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Rite Aid reports mixed Q2 results

09/26/2019

Rite Aid is sharing its operating results for the second fiscal quarter.

The Camp Hill, Pa.-based retailer reported a net loss of $78.7 million, or $1.48 per share, and adjusted net income of $6.3 million, or 12 cents per share.

“After my first few weeks as CEO, I’m optimistic about our future because I believe in the Rite Aid brand and the opportunity we have to deliver innovative experiences as a health-and-wellness destination, even as we recognize the challenges ahead,” Rite Aid CEO Heyward Donigan said. “I’m also encouraged by the market opportunities for EnvisionRxOptions as health plans, and employers rethink their pharmacy services partnerships. In talking with many associates during my first 45 days, we know there is important work in front of us, and we are acting with urgency to finalize a strategic plan that positions our company to meet its full potential. We look forward to sharing the key elements of this plan in the coming months.”

Its revenues from continuing operations for the quarter were $5.37 billion compared with revenues from continuing operations of $5.42 billion from the year prior. 

Rite Aid’s retail pharmacy segment revenues were $3.85 billion and decreased 1.6% compared with the prior year. Revenues in the pharmacy services segment were $1.58 billion, an increase of 1.1% compared with the prior year. 

“As we continue these efforts, I’d like to thank our Rite Aid team for their hard work during the second quarter,” Donigan said. “Our Adjusted EBITDA results exceeded our plan, driven by prescription count growth and strong expense control. This gives us important momentum for our future, and I look forward to working closely with our team to deliver a solid finish to our fiscal year and position Rite Aid as an innovative leader in our industry.”

Net loss from continuing operations was $78.7 million or $1.48 per share compared with last year’s second quarter net loss from continuing operations of $352.3 million or $6.67 per share. 

In addition, the retailer remodeled 24 stores and relocated one store, bringing the total number of wellness stores chain wide to 1,805. Additionally, the company closed two stores, resulting in a total store count of 2,464 at the end of the second quarter, the company said.