Factors at Play As mentioned above, Rite Aid stock is struggling as evident from its dismal earnings and sales graphs. In first-quarter fiscal 2019, earnings lagged estimates after two straight quarters of positive surprise while sales topped after three consecutive misses. Bottom-line results were primarily hurt by an increase in interest expenses, higher lease termination and impairment charges as well as higher transaction costs. Moreover, sales dipped on account of soft comps as well as decline in revenues at the Retail Pharmacy segment. Further, management notes that trends in the generic drug market have not been favorable lately. Consequently, Rite Aid slashed the outlook for fiscal 2019 in response to the recent generic drug bid activity that altered anticipated projections for this market for the rest of the year. It revealed that the generic drug purchasing efficiencies are likely to be $80 million lower than initially guided.