Rite Aid Q3 Sales Down, But Comps Grow
Rite Aid’s third quarter financial results were a mixed bag as the drug store chain reported a drop in sales and a growing net loss, but an increase in same-store sales.
For the 13 week period ended Nov. 26, total revenue was $6.08 billion, a decrease from net revenue of $6.23 billion in the comparable quarter the previous year. Net loss was $67.1 million, up from a net loss of $36.1 million. Net loss per diluted share was $1.23 versus a net loss per diluted share of $0.67 in the third quarter of 2021. Retail comparable same store prescriptions increased 4.4% and same same front-end sales, excluding tobacco, was up 2.7%.
The decline in revenue was due largely to a reduction in revenue from COVID vaccines and testing, store closures and a planned loss of covered lives at Elixir. These items were partially offset by increases in both comparable front-end sales and non-COVID prescriptions.
“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, Rite Aid’s president and CEO. “However, based on recent trends, we are lowering our full year guidance due to headwinds including pharmacy margin, seasonal markdowns and higher shrink.”
He said the company is kicking off a performance acceleration program, which will allow the retailer to fast-track initiatives that will improve sales, script volume and operating margins, and free up cash.
Rite Aid Corporation is also restating its outlook for fiscal 2023 revenues and lowering its outlook for net loss and adjusted EBITDA.
Total revenues are expected to be between $23.7 billion and $24.0 billion in fiscal 2023. Retail Pharmacy Segment revenue is expected to be between $17.4 billion and $17.6 billion and Pharmacy Services Segment revenue is expected to be between $6.3 billion and $6.4 billion (net of any intercompany revenues to the Retail Pharmacy Segment).
Net loss is expected to be between $584 million and $551 million. Adjusted net loss per share is expected to be between $2.18 and $1.78.