Ceremony Support to shut a minimum of 63 shops within the coming months

A Rite Aid store is on display in downtown Los Angeles, California, the United States, October 16, 2019. Picture dated October 16, 2019.

Mike Blake | Reuters

Drugstore chain Ritual help said Tuesday it plans to close at least 63 stores as the number of locations needed is re-evaluated.

The company said the closings were identified as part of an ongoing review and expects more stores to close over the next several months.

Rite Aid said its goal is to cut costs, increase profitability and have “solid foundations”. The company said the 63 closings that began last month are expected to increase its earnings before interest, taxes, depreciation and amortization by about $ 25 million.

On Tuesday, Rite Aid released mixed financial results for the third quarter of its fiscal year. Although the company was making more than expected on an adjusted basis, its revenue for the three months ended Nov. 27 was lower than analysts forecast. The retailer also lowered the sales outlook for the financial year.

Rite Aid’s shares rose more than 16% in early trading. By the close of trading on Monday, the stock was down about 22% year-to-date, bringing Rite Aid’s market cap to nearly $ 692 million.

A list of the dozen of stores Rite Aid sought to close was not immediately available. Rite Aid operates more than 2,400 retail pharmacies in the United States

Last month drug store rivals CVS health said it will around 900 stores close over the next three years as it adapts to buyers who buy more online.

Both CVS and Walgreens have increased their focus on digital growth and made businesses into destinations that offer a range of health services from flu vaccinations to diagnostic tests.

Find the full press release on Rite Aid’s results here here.