Rite Aid Touts Growth Initiatives Despite Q4 Net Loss

As it continues struggling to generate profits, Rite Aid posted a net loss from continuing operations of $255.6 million, or 24 cents per share, versus a net loss of $483.7 million, or 46 cents per share, in the year-earlier period.

With one-time charges excluded, fourth quarter net loss from continuing operations was $13.3 million, or one cent per share, versus adjusted net loss from continuing operations of $7.8 million, or one cent per share, in the year-prior quarter. Rite Aid’s adjusted loss per share was two cents less than a MarketBeat analyst consensus estimate.

Fourth quarter revenues from continuing operations were $5.38 billion compared to $5.39 billion in the year-previous period. Retail pharmacy segment revenues were $3.97 billion, flat versus the year-before period. Comparable sales gained 0.7% in the quarter year over year, with a 2.1% increase in pharmacy sales and a 1.9% decrease in front-end general merchandise and over-the-counter drug sales.

For the full fiscal year, Rite Aid posted a net loss from continuing operations of $667 million, or 63 cents per share, versus a net loss from continuing operations of $349.5 million, or 33 cents per share, in the year earlier.

Adjusted net loss from continuing operations for the full fiscal year was $3.1 million, or six cents per share, versus a net income from continuing operations of $22.4 million, or 42 cents per share, in the year prior.

Revenues from continuing operations were $21.64 billion compared to revenues of $21.53 billion in the previous year. Retail pharmacy segment revenues were $15.8 billion, flat versus the year before. Comps advanced 0.6% year over year, with a 1.7% increase in pharmacy sales and a 1.4% decrease in front end sales.

“In the fourth quarter, we continued generating critical momentum in key areas of our business while taking important steps to position Rite Aid for future growth,” said John Standley, Rite Aid CEO. “Despite a mild flu season, we delivered our third consecutive quarter of same-store pharmacy sales and prescription count growth thanks to a record number of immunizations and other script growth initiatives. As we begin our new fiscal year, we’ll look to build on this momentum as we continue transforming our business to better align with our new operational footprint and deliver greater value in the emerging value-based care marketplace. These efforts will include a strong focus on driving positive patient health outcomes, evolving our front-end business, expanding our omnichannel capabilities and controlling costs to become a more efficient and profitable company.”