Rite Aid Corporation (NYSE:RAD) topped revenue estimates in its second-quarter results while its earnings matched analyst expectations.
The drugstore chain reported a net loss of $0.34 on revenue of $5.42 billion compared with earnings of $0.16 per share on revenue of $5.35 billion in the previous second quarter.
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The Pennsylvania-based company reported adjusted losses of $0.01 per share as analysts had predicted. Revenue clocked in ahead of the $5.36 billon Wall Street expected.
Shares of Rite Aid were up more than 2.7% to $1.31 in Thursday morning trading.
Same-store sales increased 1% from last year’s numbers, including a 1.6% jump in pharmacy sales.
For the fiscal year ahead, Rite affirmed its expectation of revenues between $21.7 billion and $22.1 billion with adjusted EBITDA in the range of $540 million to $590 million.
Full-year same-store sales are expected to be flat to an increase of 1%.
However, its net loss expectation for the year has more than doubled to between $440 million and $485 million. The company had previously expected its net loss to be in the range of $125 million to $170.
The revision in its net loss expectation is tied to impairment charges from its cancelled merger with grocery chain Albertsons amid opposition from Rite Aid investors wary of getting the short end of the stick.
The company also announced that it will shake-up its board, separating the CEO and chairman positions. John Standley will remain the CEO while Director Bruce Bodaken will serve as chairman.