Rite Aid is Closing At Least 63 Stores Soon

Drugstore chain Rite Aid has announced this week that the company plans to close at least 63 stores as it reassesses how many locations it actually needs in the nation.

According to the company’s announcement, the closures were identified as part of an ongoing review and it anticipates it will find additional shops to close in the next several months.

Rite Aid said its goal is to reduce costs and boost profitability. The company also aims to have a “healthy foundation.” The company said the 63 closures, which began last month, are expected to boost its earnings before interest, taxes, depreciation and amortization by roughly $25 million.

The company operates over 2,400 retail pharmacy locations in the U.S. Which stores will be closed has not been said as of yet.

It was also on Tuesday that the company posted its earnings results for the third quarter that came in mixed.

Rite Aid had earned more than expected on an adjusted basis, but its sales for the three months ended Nov. 27 came in lower than analysts projected. The retailer also cut its outlook for sales for the fiscal year.

For the third quarter, the company reported net loss from continuing operations of $36.1 million, or $0.67 loss per share, Adjusted net income from continuing operations of $8.2 million, or $0.15 income per share, and Adjusted EBITDA from continuing operations of $154.8 million, or 2.5 percent of revenues.

“We delivered a solid quarter as we grew Adjusted EBITDA by 12.7 percent versus last year,” said Heyward Donigan, president and chief executive officer, Rite Aid.

“Despite challenges in the labor market, our pharmacists and store teams were able to meet the unprecedented volumes for COVID and flu immunizations, COVID testing and other clinical services, which clearly demonstrates our Lean work to free up capacity is paying off.”

Shares of the company are down 4% YTD.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.