It appears the retail sector took yet another beating today. On Thursday, Rite Aid (NYSE:$RAD) shares tumbled after the drugstore operator posted revenue that missed expectations and said same-store sales dropped 3.4%.
Rite Aid shares were down roughly 11%, which is around $2 per share. According to FactSet, the stock is down more than 70% in 2017.
Before the market opened Thursday, Rite Aid announced that it lost 1 cent per share for Q2, which matches Thomson Reuters forecasts. However, revenue was short at $7.7 billion. The Street forecasted $7.84 billion in revenue, according to a Thomson Reuters estimate.
Rite Aid also reported that same-store sales for the quarter dropped 3.4% over the prior year. This consists of a 4.6% decrease in pharmacy sales and 0.9% decrease in front-end sales.
In regards to the improvement in operating results, Rite Aid said it “was due primarily to receipt of the $325 million merger termination fee” from Walgreens for a failed merger.
What did Rite Aid’s CEO and Chairman have to say about the results? Well, John Standley said the overall performance paints a picture of 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 gives us a clear path forward to realize the benefits of the transaction and implement our plans to deliver improved results.”
Featured Image: depositphotos/wolterke
