With a new CEO now at the helm, Rite Aid reported a net loss as revenues fell short in the second quarter.
Revenues from continuing operations for the second quarter ended August 31 were $5.37 billion compared to revenues from continuing operations of $5.42 billion in the prior year’s quarter. Retail pharmacy segment revenues were $3.85 billion and decreased 1.6% compared to the prior year period due to a reduction in store count, partially offset by an increase in same store sales. Revenues in the pharmacy services segment were $1.58 billion, an increase of 1.1%.
Retail pharmacy segment same store sales from continuing operations for the second quarter increased 0.4% over the prior year period, consisting of a 1.5% increase in pharmacy sales and a 1.8% decrease in front-end sales. Front-end same store sales, excluding cigarettes and tobacco products, decreased 0.6%.
Net loss from continuing operations was $78.7 million or $1.48 per share compared to last year’s second quarter net loss from continuing operations of $352.3 million or $6.67 per share. The decrease in net loss was due primarily to $282.6 million of goodwill and intangible asset impairment charges, net of tax, in the prior year period and a reduction in lease termination and impairment charges. These items were partially offset by higher restructuring-related costs, higher income tax expense and a decrease in adjusted EBITDA.
Second quarter adjusted net income from continuing operations was $6.3 million or $0.12 per share, compared to the prior year second quarter adjusted net loss of $7.9 million or $0.15 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,” said Heyward Donigan, Rite Aid CEO. “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.”