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Rite Aid tops expectations for Q2

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CAMP HILL, Pa. — Rite Aid’s second quarter sales and earnings beat Wall Street’s ­projections.

Adjusted earnings per share of 25 cents topped analysts’ forecast of a 1-cent loss. Revenue for the period ended August 29 climbed 11.5% to $5.98 billion, driven by store and pharmacy benefit manager gains, and bettering the forecast $5.75 billion.

The retailer cut its net loss by $65.5 million from the year-ago period to $13.2 million. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased $17.4 million, or 13%, to $151.6 million, driven by increased revenues and a reduction in selling, general and administrative (SG&A) ­expenses.

For the full year, Rite Aid issued a revised guidance projecting a loss of $140 million to $190 million, with adjusted EPS ranging from a loss of 67 cents to a gain of 9 cents. It expects fiscal 2021 revenue of $23.5 billion to $24 billion, with same-store sales forecast to rise 3% to 4%. Cash flow is projected to be between $110 million and $160 million. The guidance assumes strong demand for flu immunizations, continued improvement in pharmacy network management at Elixir and savings from previously announced cost-reduction initiatives, offset by continued reimbursement rate pressure and the impact of a less severe cough, cold and flu season on O-T-C sales and related ­prescriptions.

“We are pleased with our second quarter performance, as we delivered another quarter of strong results while making solid progress on our bold, new RxEvolution strategy,” said president and chief executive officer Heyward Donigan. “Our retail pharmacists and associates have always been deeply committed to our communities, and they are doing a great job protecting our customers during a global pandemic. Thanks to them, Rite Aid continues to gain retail market share.”


ECRM_06-01-22


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