viewRite Aid

Rite Aid lowers full-year sales guidance

Recent sales trends and expenses related to the $2bn acquisition of EnvisionRx weigh on Rite Aid's outlook.

Rite Aid (NYSE:RAD) fell in morning trades as the third-largest US drugstore chain operator lowered its full-year outlook for sales and earnings while posting lower-than-expected fiscal second-quarter profit.

Shares dropped 9% to $7.82 at 10:30 a.m. in New York, after touching $7.79, the lowest intraday price since August 26.

Revenue is now anticipated to be $26.7bn-$27.0bn for the year ending in February, down from $26.9 bn-$27.4bn, the Camp Hill, Pennsylvania-based company said in a statement on Thursday.

The company cut its full-year earnings forecast to $0.12-$0.19 per share, down from a range of $0.14-$0.22 predicted in June. 

Same-store sales will climb 1.5 percent to 2.5%, down from an earlier outlook for growth of 2.5% to 4.5%.

Rite Aid pointed to “more recent sales trends and additional expected amortization expense” from its $2bn acquisition of pharmacy benefit manager EnvisionRx.

Rite Aid reported net income decreased to $21.5mln, or $0.02 per share, for the quarter ended August 29, down from $129.2mln, or $0.13 per share, a year earlier. 

Quick facts: Rite Aid

Price: 10 USD

Market: NYSE
Market Cap: $546.43 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...


GinsGlobal Managing Director sees Healthcare and Healthcare innovation as...

HANetf and GinsGlobal Index Funds' Managing Director Anthony Ginsberg joined Steve Darling from Proactive to share details about the success of their Healthcare Innovations ETF. Ginsberg discusses how COVID-19 had made a direct impact on that fund, especially in the telemedicine...

1 day, 22 hours ago

2 min read