uploads///

Rite Aid’s Top Line Fell for 4th Straight Quarter in Fiscal 4Q18

By

Apr. 17 2018, Updated 10:19 a.m. ET

RAD recorded 4th consecutive quarter of sales declines in fiscal 4Q18

Rite Aid (RAD) reported its fiscal 4Q18 results after the market closed on Thursday, April 12, 2018. Its top line fell 8.6% YoY (year-over-year) to $5.4 billion, missing the average consensus expectation by $180 million.

Rite Aid’s sales have declined in all four quarters of fiscal 2018. Total sales for the year from continuing operations fell 6.1% YoY to $21.5 billion.

It completed the transfer of 1,932 stores and related assets to Walgreens and entered into a definitive merger agreement with Albertsons during fiscal 4Q18.

Article continues below advertisement

John Standley, Rite Aid’s chairman and CEO, said, “During the fourth quarter, we made significant progress in a number of areas: our Retail Pharmacy Segment delivered strong results with an increase in Adjusted EBITDA over the prior year; our Pharmacy Services Segment is off to a strong start in the new commercial selling season; shortly after the quarter ended, we completed the asset sale of 1,932 stores to WBA; and we entered into a definitive merger agreement with Albertsons Companies to transform Rite Aid into a truly differentiated leader in food, health and wellness.”

In the next part of this series, we’ll look at the key revenue drivers for the quarter.

Recent top-line performances of key competitors

Walgreens (WBA), which reported quarterly results on March 28, 2018, posted a 12% YoY increase in total sales to $33 billion, which was $830 million more than the consensus revenue expectation. Most of the sales increase was fueled by the acquisition of Rite Aid stores during the quarter.

CVS Health (CVS), America’s largest pharmacy chain, reported a 5.3% YoY rise in sales to $48.4 billion in its quarterly results in February 2018. It outperformed the consensus expectation of $850 million.

Investors seeking to add exposure to Rite Aid can consider the SPDR S&P Retail ETF (XRT), which invests 1% of its portfolio in the company.

Advertisement

More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.