Rite Aid Corp.’s stock rose 7.5% in premarket trade Thursday, after the drugstore chain surprised investors with a narrower-than-expected loss for its fiscal first quarter and better-than-expected revenue.

The stock (RAD, -4.45%) has dropped 20% this week. This is due to Bloomberg’s report that the company was in discussions with a restructuring of $2.9 billion worth of debt.

The Philadelphia-based firm posted a loss of $306.7m, or $5.56 per share, in the quarter ending June 3. This was a larger loss than the $110.2m, or $2.03 per share, recorded during the same period last year. The larger loss was primarily due to an impairment charge of goodwill at Elixir Pharmacy Benefit Management, a company-owned business.

The adjusted loss per share of the company was 73 cents. This is lower than FactSet’s consensus loss estimate of $1.50.

The revenue fell to $5.653 from $6.015, but it was still higher than the FactSet consensus of $5.324 billion.

“Our first-quarter results were driven primarily by strong script growth and solid pharmacy margins, as well as early progress in our turnaround program. This offset underperformance of front-end sales at the Retail Pharmacy Segment, and a higher than expected medical loss ratio for Elixir Insurance,” stated Elizabeth “Busy Burr”, interim chief executive.

She said that the company plans to reduce SG&A costs and capex for the remainder of the year.

Retail prescriptions at the same store rose by 4.7% during the quarter, and 8.4% when excluding the lower demand for COVID testing and vaccines.

The company’s revenue was hurt by the reduction of its Prescription Drug Plan and the loss commercial clients from Elixir. Other items that contributed to the net loss were higher restructuring-related charges, a smaller gain on the sale of assets, higher interest costs and a decline in adjusted EBITDA. These were partly offset by reduced facility exit and impairment costs.

Retail-pharmacy revenues rose by 3.4%. The same-store sales increased by 8.4%. Same-pharmacy sales grew 13.5% while front-end sales dropped 4.4%.

Rite Aid expects a loss per share in fiscal 2024 of $4.29 – $4.78, and revenues of $22.6 – $23.0 billion. FactSet expects a loss per share of $4.79, and revenue of $22.3 Billion.

The stock is down 54% year-to-date, while S&P 500 , SPX, +0.04%, has gained 14%.

This news comes just a day following a disappointing report by Walgreens Boots alliance Inc. WBA +1.54% ,, which sent the stock price to levels not seen since 2010.

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