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.