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Why Are Rite Aid’s Margins Deteriorating?

Sonya Bells
Why Are Rite Aid’s Margins Deteriorating?

Rite Aid Corporation (RAD) is expected to post an adjusted loss of 1 cent per share when it reports its second-quarter 2019 results on September 27. The company has projected a net loss of $125 million–$170 million or a loss per share of up to $0.04 for the year. Rite Aid has seen continuous deterioration in its profitability over the last couple of years, mainly due to lower reimbursement rates and a falling script count.