Rite Aid Tanks 17% On Updated Outlook

(RTTNews) - Rite Aid Corp. (RAD) Wednesday updated its full year outlook after its fourth quarter results were significantly impacted by a soft cough, cold and flu season, ongoing impacts related to COVID-19 and challenging weather conditions.

"During the fourth quarter our industry was impacted by a historically soft cough, cold and flu season, as well as the continued impacts of COVID on the deferral of elective procedures and related acute prescription volume and selling, general and administrative expenses. In addition, there were significant weather events in February that impacted our supply chain and depressed sales," said Heyward Donigan, president and CEO of Rite Aid.

For fiscal 2021, Rite Aid now expects revenues to be approximately $24.0 billion with same store sales expected to increase approximately 3.5 percent over fiscal 2020. Net loss is expected to be between $90 million and $100 million.

Analysts polled by Thomson Reuters expects full year 2021 revenues of $24.07 billion.

The company expects to report adjusted earnings before interest, taxes, depreciation and amortization of $425 million to $435 million for the fiscal year, which is down from its previous forecast of $490 million to $520 million.

RAD closed Wednesday's trading at $23.34, down $0.57 or 2.38%, on the NYSE. The stock further slipped $4.04 or 17.31% in after-hours trading.