Rite Aid managed to best analyst forecasts for the fourth quarter even as its chairman and CEO noted that "the extended duration of the merger process" with Walgreens Boots Alliance is "having a negative impact" on the company's results.
Rite Aid’s revenue rose a better-than-expected 2.7% to $8.5 billion in the quarter. Same-store sales fell 3.0%, consisting of a 4.3% decrease in pharmacy sales and a 0.3% decrease in front-end sales.
Rite Aid noted that it and Walgreens are working toward a close of the merger by July 31, 2017. But the chain added “there can be no assurance that the requisite regulatory approvals will be obtained, or that the merger will be completed within the time period contemplated by the merger agreement on the current terms, if at all.”. . . more