Rite Aid Posts Q2 Loss As It Shifts Strategy

After its failed merger attempt with Walgreens Boots Alliance, Rite Aid has been developing a standalone strategy to move forward, but still saw a net loss in the second quarter.

Net loss from continuing operations came in at $352.3 million, or 33 cents per share, versus net income from continuing operations of $188.4 million, or 18 cents per share, in the year-prior period.

One-time impacts aside, adjusted net loss from continuing operations was $7.9 million, or one cent per share, versus adjusted net income of $17.4 million, or two cents per share, in the year-earlier quarter. Adjusted earnings per share matched a MarketBeat-published analyst consensus estimate.

Retail pharmacy segment comparable sales advanced 1% in the quarter year over year, consisting of a 1.6% increase in pharmacy sales and 0.1% decrease in front-end sales, which include general merchandise.

Revenues from continuing operations were $5.42 billion versus $5.35 billion in the quarter a year before. Retail pharmacy segment revenues were $3.91 billion, an increase of 0.2% compared to the period a year prior, with the gain resulting from the comp increase partially offset by a reduction in store count.

“During the quarter, we have been hard at work accelerating our standalone strategy to capitalize on key opportunities to grow our business,” said Rite Aid chairman and CEO, John Standley. “These efforts helped us drive significant improvement in front-end and pharmacy comparable stores sales and exceed our plans for script count growth. With our trusted brand of health and wellness, highly popular customer loyalty program, innovative wellness format and expanding offering of health and wellness services, we have a strong foundation for growth.”