On Thursday, retail drugstore chain with segments in retail pharmacy and pharmacy services, Rite Aid (NYSE: RAD) announced poor second quarter earnings missing analysts’ expectations. The company reported EPS of $0.03 on revenues of $8.03 billion, aligning consensus estimates of EPS of $0.03 on missed revenues of $8.17 billion.
"In the second quarter, we continued to drive positive results in our Pharmacy Services Segment, which includes our EnvisionRx PBM, and had strong performance in our front-end business," said Chairman and CEO John Standley.
"We also saw improvements in prescription drug costs, but these improvements were more than offset by the challenging reimbursement rate environment, which we expect to continue through the remainder of the fiscal year. Heading forward, we will remain focused on operating our business as efficiently as possible while pursuing key growth opportunities such as our flu immunization campaign and converting additional stores to the Wellness format, which continue to perform well and now represent nearly half of our chain."
The company reported a decline of 2.5 percent ($6.49 billion) in same-store sales.
Total drugstore sales were a whopping 68.5 percent.
Gross margin rates squeezed 120 bps to 23.9 percent.
SG&A expense rates improved 40 bps to 22.1 percent.
Adjusted EBITDA fell 9.8 percent to $312.7 million.