The news comes a day after a disappointing report from rival Walgreens Boots Alliance Inc. The stock has fallen 54% in the year to date, while the S&P 500 FactSet is expecting a loss of $4.79 and revenue of $22.3 billion.Įxecutives declined to comment on the debt issue, while conceding that the company is always in touch with its lenders. Rite Aid is expecting a fiscal 2024 loss per share of $4.29 to $4.78 and revenue of $22.6 billion to $23.0 billion. The company said it is now planning to cut SG&A and capex costs for the rest of the year, she said. But are stores using crime stats to cover up other problems ![]() Related: Retailers say theft cost nearly $100 billion last year. “We’ve hired new leadership and loss prevention as we continue to look at new ways to address shrink,” she said.įor more, see: Target battling inventory ‘shrink’ caused by theft and organized retail crime, says CEO “And Elixir Insurance is experiencing a higher-than-expected medical-loss ratio as adverse selection during annual enrollment is driving unfavorable changes in utilization and drug mix.”īurr also mentioned a topic that featured heavily among retailers this earnings season, that of “shrink,” or inventory missing due to shoplifting. “We saw a decline in transactions in our stores driven by a reduction in demand for respiratory-related products, some inventory challenges with the transition of our perishable food vendors and some inefficient pricing ,” she told analysts, according to a FactSet transcript. Those were partially offset by decreased facility exit and impairment charges. Other items that contributed to the net loss were higher restructuring-related charges, a smaller gain on the sale of assets, higher interest costs and a decline in adjusted Ebitda. Revenue was hit by a reduction in the company’s Prescription Drug Plan membership and the loss of commercial clients at Elixir. Retail same-store prescriptions rose 4.7% in the quarter and were up 7.4% excluding the impact of lower demand for COVID vaccines and testing. On a call with analysts, Burr said Rite Aid ended the quarter ahead of plan. “Our first quarter results were driven by strong script growth, solid pharmacy margins and early progress with our turnaround program, which offset underperformance on front-end sales in the Retail Pharmacy Segment and a higher-than-expected medical loss ratio at Elixir Insurance,” said Elizabeth “Busy” Burr, interim chief executive officer. Revenue edged down to $5.653 billion from $6.015 billion, but was ahead of the $5.324 billion FactSet consensus. The FactSet consensus was based on just three analyst estimates as many have stopped covering the troubled company. The company’s adjusted per-share loss came to 73 cents, narrower than the FactSet consensus for a loss of $1.50. ![]() The wider loss was mostly due to a noncash goodwill impairment charge at the company’s Elixir pharmacy benefit management business. On Thursday, the Philadelphia-based company posted a net loss of $306.7 million, or $5.56 a share, for the quarter to June 3, wider than the loss of $110.2 million, or $2.03 a share, posted in the year-earlier period.
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