As Rite Aid provides communities with essential care, services and products during the COVID-19 pandemic, the company reported sales growth in the fourth quarter, although the drug store retailer also saw its net loss widen.
Revenues for the fourth quarter ended February 29 were $5.73 billion compared to revenues from continuing operations of $5.38 billion in the prior year’s quarter. Retail pharmacy segment same store sales from continuing operations for the fourth quarter increased 1.6% over the prior year period, consisting of a 1.6% increase in pharmacy sales and a 0.1% increase in front-end sales. Front-end same store sales, excluding cigarettes and tobacco products, increased 1.5%.
Net loss from continuing operations was $343.5 million, or $6.43 per share compared to last year’s fourth quarter net loss from continuing operations of $255.6 million, or $4.83 per share. Income tax expense in the current year’s fourth quarter was impacted by a $320.6 million charge related to an increase in the valuation allowance against the company’s deferred tax asset.
For the fiscal year ended February 29, revenues from continuing operations were $21.9 billion compared to revenues of $21.6 billion in the prior year. Retail pharmacy segment same store sales from continuing operations for the year increased 1.1%, consisting of a 1.4% increase in pharmacy sales and a 0.6% decrease in front end sales. Front-end same store sales, excluding cigarettes and tobacco products, increased 0.6% for the year.
Net loss from continuing operations for fiscal 2020 was $469.2 million, or $8.82 per share compared to last year’s net loss from continuing operations of $667 million, or $12.62 per share.
“I’d like to thank our Rite Aid team for working together to deliver a solid finish to the fiscal year,” said Heyward Donigan, president and CEO, Rite Aid. “Strong execution by our team drove growth in both pharmacy services segment revenues and retail pharmacy segment prescription count, and helped deliver our second consecutive quarter-over-quarter improvement in Adjusted EBITDA. These results provide important momentum as we redefine our industry by deploying our bold, new RxEvolution strategy. As we begin the new fiscal year, Rite Aid’s top priority is to continue providing the essential care, services and products that our communities need during the COVID-19 crisis.”