The third quarter spelled losses for Rite Aid Corp. but the company did beat Wall Street estimates as front-end comparable sales advanced.
Third quarter net loss was $67.1 million, or $1.23 per share, compared to a net loss of $36.1 million, or 67 cents per share, in the year-prior period. Adjusted net loss was $7.9 million, or 14 cents a share, the company stated, versus adjusted net income of $8.2 million, or 15 cents per diluted share, in the year-before quarter.
An analyst consensus estimate published by Yahoo Finance pegged net loss at 31 cents per share and net revenue at $5.94 billion for the quarter.
Revenues were $6.08 billion versus $6.23 billion in the year-earlier quarter, largely due to a reduction in revenue from COVID-19 vaccines and testing, store closures and a planned loss of covered lives at Elixir, Rite Aid’s pharmacy benefits and services operation. Increases in both comparable front-end sales and non-COVID prescriptions partially offset those results, the company noted.
Retail Pharmacy Segment revenues decreased 0.5% in the quarter year over year, driven by a reduction in COVID-19 vaccine and testing revenue as well as store closures, partially offset by an increase in both acute and maintenance prescriptions. Comparable sales for the quarter increased 7.5% over the previous-year period, with a 9.5% increase in pharmacy sales and a 2.2% increase in front-end sales, which include general merchandise. Front-end comps, excluding tobacco products, advanced by 2.7%. The total store count at the end of the quarter was 2,324.
“Our third quarter beat consensus on top and bottom line, and we’re pleased with our results at Elixir and our accelerated sales growth at retail,” said Heyward Donigan, president and CEO, in announcing the financial results. “However, based on recent trends, we are lowering our full-year guidance due to headwinds including pharmacy margin, seasonal markdowns and higher shrink. In addition, we are kicking off a performance acceleration program, which allows us to fast-track initiatives that will improve sales, script volume and operating margins, and free up cash. We look forward to updating you on our progress at year-end.”
