Rite Aid, yes, it’s still a publicly traded company (for now), tumbled nearly 30% today after a big earnings miss. 😮
The drugstore chain reported adjusted earnings per share loss of $0.63, below the $0.50 expected. Meanwhile, revenue fell about $200 million YoY to $5.901 billion.
Where the company faced trouble was its outlook. It stuck with its fiscal 2023 revenue guidance but forecasted a larger-than-expected loss of $477.30-$520.30 million. Additionally, its same-store sales disappointed, growing just 0.3% on an inflation-adjusted basis. 👎
As is usually the case, a business struggling during the good times is likely to perform poorly in the bad times. And that’s what we’re seeing here as it faces continued pressure on consumer spending and supply chain challenges.
Who knows what can save the company, but it’s certainly in need of some aid as its stock approaches a new all-time low. 📉