RITE AID Reports 86.2% Decrease in Q3 Revenue and 2.3% Drop in Net Income for FY2023
January 8, 2023
Earnings report
RITE AID ($NYSE:RAD) Corporation, a retail pharmacy chain in the United States, reported their fiscal year 2023 third quarter results on December 21 2022, as of November 30 2022. According to their financial report, total revenue for the quarter decreased by 86.2% compared to the same period a year prior, amounting to a USD -67.1 million loss. Net income for the quarter was USD 6083.4 million, a decrease of 2.3% from the same period a year before. The company offers a variety of products and services, including prescription medications, over-the-counter drugs, health and beauty supplies, vitamins and supplements, and more.
Additionally, RITE AID operates a number of in-store clinics to provide general health care services and immunizations. The drastic decrease in RITE AID’s Q3 earnings reflects the ongoing challenges faced by the retail pharmacy industry. Despite the challenges, RITE AID has remained resilient and continues to focus on providing its customers with quality products and services at competitive prices. In an effort to better serve their customers, RITE AID has also implemented initiatives to improve customer experience and increase convenience, such as online ordering and delivery services. Looking ahead, RITE AID remains confident in its ability to continue providing quality products and services to its customers. Despite the difficult situation, RITE AID is optimistic about the future and is committed to delivering value to its stakeholders. As the retail pharmacy industry continues to evolve, RITE AID will stay ahead of the curve by focusing on innovative strategies and technologies that will help them remain competitive in a rapidly changing market.
Share Price
On Wednesday, RITE AID reported a 86.2% decrease in revenue for their third quarter of FY2023 and a 2.3% drop in net income for the same period. Following the announcement, their stock opened at $4.5 and closed at $3.6, a 17.2% plunge from their last closing price of 4.4. This was a huge drop in revenue and income for the company, which had previously reported positive earnings for the first two quarters of the year.
In addition, the company has been struggling with declining sales and customer loyalty due to increased competition from other drugstores, such as Walgreens and CVS. They have also been facing a number of legal issues, including a lawsuit for allegedly overcharging customers for generic drugs. These issues have further compounded their financial woes and contributed to their third-quarter losses. Going forward, RITE AID will need to make some changes to their business model if they want to get back on track. They will need to focus on ways to increase customer loyalty and sales, as well as address their legal issues in order to improve their bottom line. It remains to be seen how the company will respond to these challenges in the coming months. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Rite Aid. More…
| Total Revenues | Net Income | Net Margin |
| 24.06k | -897.69 | -2.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Rite Aid. More…
| Operations | Investing | Financing |
| 23.86 | -113.41 | 37.31 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Rite Aid. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 8.21k | 8.61k | -5.95 |
Key Ratios Snapshot
Some of the financial key ratios for Rite Aid are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.7% | -4.7% | -2.8% |
| FCF Margin | ROE | ROA |
| -0.9% | 115.7% | -5.2% |
VI Analysis
Investors looking for a long-term potential should consider the fundamentals of a company, and the VI app can make such analysis simpler. According to the VI Star Chart, RITE AID is considered to be strong in some aspects, medium in profitability and weak in asset, dividend and growth. With an intermediate health score of 5/10, considering its cashflows and debt, RITE AID might be able to pay off debt and fund future operations. It is classified as a ‘sloth’ type of company, meaning it has achieved revenue or earnings growth slower than the overall economy. Investors who are looking for potential long-term returns may be interested in this type of company. They should consider the company’s fundamentals, such as profitability, asset, dividend and growth, as well as its health score to determine if it is a good investment opportunity. They should also look into the company’s financials to assess its current and potential performance. Additionally, investors should consider the risk associated with the company, such as its debt and cashflow. Finally, they should consider the company’s future outlook and potential for growth. More…
VI Peers
The company operates through a network of approximately 4,600 stores in 31 states. Rite Aid Corp is the third largest pharmacy chain in the US. The company’s main competitors are COSMOS Pharmaceutical Corp, Clicks Group Ltd, Yifeng Pharmacy Chain Co Ltd.
– COSMOS Pharmaceutical Corp ($TSE:3349)
COSMOS Pharmaceutical Corp is a Japanese pharmaceutical company with a market cap of 575.37B as of 2022. The company’s return on equity is 10.84%. The company develops and manufactures prescription drugs, over-the-counter drugs, and medical devices. The company’s products include treatments for cancer, diabetes, and infectious diseases.
– Clicks Group Ltd ($OTCPK:CLCGY)
Clicks Group Ltd is a South African company that operates in the healthcare and beauty retail sector. The company operates through two segments: Retail and Supplies. The Retail segment comprises of Clicks, GNC, The Body Shop, and Musica. The Supplies segment includes UPD, the leading pharmaceutical and medical wholesaler in Southern Africa. Clicks Group Ltd has a market cap of 4.32B as of 2022. The company has a Return on Equity of 46.27%.
– Yifeng Pharmacy Chain Co Ltd ($SHSE:603939)
Yifeng Pharmacy Chain Co Ltd has a market cap of 41.14B as of 2022, a Return on Equity of 12.88%. Yifeng is a pharmacy chain in China with over 1,000 stores. The company offers prescription and over-the-counter drugs, as well as health and beauty products.
Summary
Investing in RITE AID has been a difficult decision since the company reported their FY2023 Q3 earnings results on December 21, 2022. Total revenue for the quarter was a staggering 86.2% decrease compared to the same period the year prior, and net income declined 2.3%. As expected, the stock price moved down the same day. In the short term, investors may be wary of investing in RITE AID due to such low earnings results.
However, the company has taken steps to improve their operations and increase sales by expanding their online offerings and creating an omnichannel retail experience.
Additionally, RITE AID is investing in new technology and leveraging data analytics to better understand customer behavior and preferences. Long-term investors may be more willing to invest in RITE AID as the company works to strengthen its operations and build a more profitable future. The company has plans to continue expanding their online presence and improve the customer experience, which could lead to increased sales and improved earnings results in the future. For investors who are willing to take on a bit more risk, RITE AID could be a viable option with potential long-term growth.
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