Rite Aid reported a quarterly loss of more than $67 million due to “reduced profits from COVID vaccines and testing,” the drugstore chain said Wednesday.
Rite Aid lost $67. 1 million for its fiscal third quarter of 2023 that ended Nov. 26 this year, compared to a loss of $36 million in the year-ago quarter, the company revealed. In the first nine months of the year, Rite Aid lost more than $500 million with profits largely flat or falling amid store closures.
Rite Aid also cut its monetary outlook for fiscal 2023 earnings and lowered its net loss outlook. “The net loss is expected to be between $584 million and $551 million,” Rite Aid revealed on Wednesday. Fiscal year 2023 “is expected to be between $520. 3 million and $477. 3 million. “
In its fiscal third quarter, Rite Aid said its profit fell to $6. 1 billion from $6. 2 billion a year ago. Part of the explanation for the drop in profits is that fewer Americans are going to outlets for Covid-19 diagnostic tests or vaccines. to themselves opposed to the virus as they were before in the pandemic.
Pharmacy chains have done well with the Covid-19 pandemic thanks in part to the addition of fitness facilities and have become the go-to place for getting vaccinated and tested for Covid-19. These days, however, testing is slowing and fewer Americans are returning for booster shots despite their benefits.
In an earnings report on Wednesday, Rite Aid lead executive Heyward Donigan said the company was pleased with the effects of its pharmaceutical benefit control unit, Elixir, and “our accelerated retail sales growth. “
“However, based on recent trends, we are reducing our full-year direction due to headwinds, adding pharmacy margin, seasonal markdowns and unknown sales,” Donigan said. “In addition, we are launching a functionality acceleration program, which allows us to drive projects that will increase sales, script volume, operating margins and lose cash. “