Rite Aid Down 28% On Wider Quarterly Loss, Reduced Outlook

(RTTNews) - Shares of drugstore chain Rite Aid Corporation (RAD) are falling more than 28% Thursday morning after reporting wider loss in the second quarter. The company also cut its full-year outlook for adjusted EBITDA and net loss.

Second-quarter net loss was $331.3 million, or $6.07 per share, wider than net loss of $100.3 million, or $1.86 per share a year ago, primarily due to impairment charges of $252.2 million in the latest quarter.

Revenues for the quarter declined to $5.90 billion from $6.11 billion in the prior year's quarter, largely due to a reduction in revenue from COVID vaccines and testing, store closures and a planned loss of covered lives at Elixir.

Looking forward to the full year, the company has lowered its outlook for net loss as well as adjusted EBITDA, while maintaining revenue guidance.

Adjusted EBITDA is now expected to be between $450 million and $490 million versus its prior guidance of between $460 million and $500 million, due to expectations of cautious consumer demand and continued supply chain challenges.

Net loss for the year is seen between $520.3 million and $477.3 million.

Revenues are expected in the range of $23.6 billion-$24.0 billion in fiscal 2023.

RAD, currently at $5.02, has been trading in the range of $4.68-$15.65 in the last 1 year.