Rite Aid has struggled for years now to get its financial affairs in order as it competes against its larger drugstore rivals. It hasn’t posted positive net income from continuing operations since the fiscal year covering 2016. During the pandemic, when drugstores became a convenient shopping venue and critical health service providers, those losses shrunk, but still remained above $100 million.
This year, however, losses are surging again. In the third quarter, the company’s net income fell from $4.3 million last year to a nearly $36.1 million loss this year. For the first nine months of its fiscal year, losses have more than doubled compared to last year.
Given that, it’s no surprise Rite Aid is shrinking its footprint, which currently stands at more than 2,400 retail pharmacies. Yet the company raised its expectations for the fiscal year and said that adjusted EBIDTA rose 12.7% from last year.Retail Dive