Rite Aid (NYSE:RAD) saw its stock slide first thing Wednesday after reporting a smaller-than-expected loss and revenue that beat Wall Street forecasts, helped by accelerated sales growth at its retail operations. However, the drugstore operator lowered its full-year guidance due to various issues, including seasonal markdowns.
Revenues of $6.1 billion, Compared to Prior Year Revenues of $6.2 billion. Same Store Prescriptions Increased 4.4%- Comparable Same Store Acute Prescriptions, Excluding COVID Immunizations, Increased 8%. Net Loss per Share proved $1.23, compared to the Prior Year Net Loss per Share of $0.67
Adjusted EBITDA of $121.9 million, Compared to the Prior Year Adjusted EBITDA of $154.8 million, with Elixir growing 39% to $40.2 million from $28.9 million. Fiscal 2023 Adjusted EBITDA Outlook Lowered to $410 million to $440 million, and Adjusted Net Loss per Share to be between $2.18 and $1.78
Said CEO Heyward Donigan, “Our third quarter beat consensus on top and bottom line, and we’re pleased with our results at Elixir and our accelerated sales growth at retail. However, based on recent trends, we are lowering our full year guidance due to headwinds including pharmacy margin, seasonal markdowns and higher shrink. In addition, we are kicking off a performance acceleration program, which allows us to fast-track initiatives that will improve sales, script volume and operating margins, and free up cash. We look forward to updating you on our progress at year end.”
RAD shares fell 36 cents, or 8%, to $4.06