Rite Aid Corp. shares dropped after the drugstore chain cut its forecast for profit and revenue on expectations for slower growth in stores that have been open at least a year.
The company expects earnings for fiscal 2016, which ends in February, to reach 12 cents to 19 cents a share, down from a range of 14 cents to 22 cents predicted in June. Revenue will be $30.8 billion to $31.1 billion, the company said in a statement. Same-store sales will climb 1.5 percent to 2.5 percent, down from an earlier outlook for growth of 2.5 percent to 4.5 percent.
Rite Aid is focusing more heavily on drug sales as competition from online retailers cuts into revenue from other consumer goods. Front-of-the-store sales rose 0.3 percent in the fiscal second quarter, compared with a 2.8 percent gain for pharmacy sales. The company acquired EnvisionRx, which helps insurers and employers manage their drug benefits, in June for about $2 billion to gain more heft in the pharmaceutical market.
Rite Aid fell 5.8 percent to $8.09 at 9:35 a.m. in New York. The shares were up 34 percent in the last 12 months, as of Wednesday’s close.