Rite Aid could be looking at more store closings

Rite Aid announced during its Q1 earnings call that it closed 25 stores during the opening months of the fiscal year, and more could be on the horizon.

Matthew Schroeder, Rite Aid’s chief financial officer and executive vice president, said during the Q1 earnings report that the company is always looking at the performance of all stores, especially those which have leases coming to an end. He said he expected the company to continue to follow that strategy as the fiscal year progresses.

Schroeder could not put a number on the future store closings, but since late 2021 Rite Aid has shuttered 180 stores.

Rite Aid is facing a predicted net loss of as much as $680 million this fiscal year, which is worse than originally thought.

The company continues to try to weather a poor earnings climate. For Q1, the company reported a net loss of $306.7 million (vs. $110.2 million in losses in Q1 2022), adjusted net loss of $40.1 million and Adjusted EBITDA of $91.7 million. 

Revenues came in at $5.65 billion, which was about $350 million less year-over-year. Rite Aid blames the results on the reduction in the company’s Prescription Drug Plan membership and the loss of commercial clients at pharmacy services provider Elixir.

Rite Aid's top competitor, Walgreens, recently announced it would be closing 150 stores in the U.S.