What happened
Shares of Rite Aid (RAD -24.92%), a large retail drugstore chain, declined nearly 27% early Thursday morning before recovering slightly, after the pharmacy retailer released fourth-quarter fiscal 2020 results.
So what
The company reported fourth-quarter fiscal 2020 adjusted loss of $0.37 per share, worse than analysts' estimates of a $0.15-per-share loss. Despite the wider-than-expected bottom-line loss, revenue checked in at $5.73 billion, which was higher than the prior year's $5.38 billion and ahead of analysts' estimates calling for $5.59 billion. Retail pharmacy same-store sales increased 1.6%, falling short of analysts' estimates for a 2.4% increase.
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"As we begin the new fiscal year, Rite Aid's top priority is to continue providing the essential care, services and products that our communities need during the COVID-19 crisis," said Heyward Donigan, Rite Aid's president and chief executive officer, in a press release. "I couldn't be more proud of our team for working together to support our fellow associates and serve our customers and clients during this global health emergency," Donigan continued.
Now what
Rite Aid stock has performed fairly well during the COVID-19 coronavirus outbreak, compared to many hard-hit sectors, and management noted that its comparable front-end (non-prescription) sales jumped 33% in March due to increased demand for paper products and personal care, and a rise in 30-day prescription count. Management also noted it has liquidity of $1.9 billion and has "tempered" first-quarter sales expectations because of social distancing.
