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Rite Aid Revises Fiscal 2019 Outlook

Rite Aid recently updated its fiscal 2019 outlook, which the company initially provided on April 12.

As previously disclosed, Rite Aid’s outlook is based on a number of factors, including the benefits from an anticipated reimbursement rate environment that is more stable than the prior year, fees under a transition services agreement with Walgreens Boots Alliance, generic drug purchasing efficiencies, and other initiatives to grow sales and drive operational efficiencies. Rite Aid’s fiscal 2019 outlook does not reflect the impact of the canceled merger with Albertsons Companies.

The company now expects generic drug purchasing efficiencies to be approximately $80 million less than when Rite Aid established its fiscal 2019 outlook. As a result, adjusted EBITDA is now expected to be in a range between $540 million and $590 million, updated from the previously disclosed range of between $615 million and $675 million; net loss is now expected to be in a range between $125 million and $170 million, updated from the previously disclosed range of between $40 million and $95 million; and adjusted net loss per diluted share is now expected to be in the range of $0.04 updated from the previously disclosed adjusted net income per diluted share range of between $0.02 and $0.06.

The company’s outlook for sales and same store sales remains unchanged, the company said.