RAD - Rite Aid expects bigger fiscal 2023 net loss as Q1 net loss expands

Rite Aid Corp. ( NYSE: RAD ) is expecting its fiscal 2023 net loss to be bigger than previously projected due to impairment charges from closed stores and an increase in interest expenses from rising interest rates.

The drug-store chain reported Q1 FY23 net loss of ~$110.2M (-$2.03 per share), a 744% widening from the $13.1M loss reported in the year-ago period. However, that was a bottom-line beat.

The company attributed the larger loss to higher facility exit and impairment charges from store closings and a decrease in adjusted EBITDA.

Revenue of $6B was ~2% year-over-year decline but was still enough for a beat.

Revenue in the pharmacy services segment in the quarter was ~$1.7B, ~8% decline from Q1 FY22. Rite Aid ( RAD ) said this was due to a planned decrease in its pharmacy benefit manager Elixir  membership and a previously disclosed client loss due to industry consolidation.

In FY 2023, the company expects to spend ~250M on capital expenditures focusing on digital capabilities, technology, prescription file purchases, distribution center automation, and store remodeling.

Check out what Deutsche Bank had to say about Rite Aid earlier in June .

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