RAD returns to growth in the second quarter
Rite Aid (RAD) reported results for the second quarter—which ended on September 1—yesterday. The company’s top line from continuing operations improved 1.4 % YoY (year-over-year) to $5.42 billion. Wall Street, in comparison, had projected a 0.3% YoY increase in sales to $5.36 billion.
“During the quarter, we have been hard at work accelerating our standalone strategy to capitalize on key opportunities to grow our business,” said John Standley, Rite Aid’s chairman and CEO. “These efforts helped us drive significant improvement in front-end and pharmacy comparable stores sales and exceed our plans for script count growth.”
Rite Aid’s sales grew after five straight quarters of decline. The top line plunged in every quarter of fiscal 2018 and shrunk 0.9% YoY during the first quarter of 2019. See the next part of this series to learn about the key revenue drivers for the quarter.
Management reiterates full-year guidance
Rite Aid reaffirmed its fiscal 2019 guidance. It continues to expect sales between $21.7 billion and $22.1 billion, reflecting a 1.7% YoY increase at the mid-point. Same-store sales are projected to grow between 0% and 1%. EBITDA are expected to remain in the same range guided earlier.
Competitors’ results and expectations
CVS Health (CVS), the largest US pharmacy chain, reported a 2.2% YoY jump in sales to $46.7 billion when it reported its quarterly results in early August. The company outperformed consensus expectations by $360 million.
Walgreens Boots Alliance (WBA) is slated to release its financial results on October 11. Wall Street expects Walgreens’s sales to increase 12% YoY (year-over-year) to $33.8 billion. However, the company’s top line is expected to get a boost from last year’s acquisition of Rite Aid stores.