On Thursday, Rite Aid Corporation (NYSE: RAD), the drugstore operator, announced its second-quarter financial results. With same-store sales dropping and revenue missing expectations, shares of the company decreased around 11%, and for this year, it dropped over 70%.
For the second quarter ended September 2, 2017, the company reported revenue of $7.7 billion, dropping 4.4% and missing estimates of $7.8 billion. Retail pharmacy sales decreased 3.4% for the second quarter, while pharmacy services revenue was down 8.7%. In addition, same-store sales dropped 3.4%, which decreased for the fifth straight quarter. Rite Aid’s revenue has missed expectations in seven of the past eight quarters.
For the second quarter of 2018, net income increased from $14.8 million, or $0.01 per share for the same period last year to $170.7 million, or $0.16 per share. Excluding one-time items, the company reported a loss of $0.01 per share, which was in line with analysts’ expectations.
“While our performance for the quarter reflects a challenging reimbursement rate environment and the effects of an extended merger and asset sale process, securing regulatory clearance for the amended asset sale agreement with Walgreens Boots Alliance (WBA) gives us a clear path forward to realize the benefits of the transaction and implement our plans to deliver improved results,” John Standley, the Chairman and CEO of Rite Aid, said in the statement on Thursday.
“We’ll also focus on generating momentum for our business by meeting the health and wellness needs of our customers and patients while delivering an outstanding experience in our stores,” he said.