Rite Aid Corporation (RAD), a leading drugstore chain operator, reported an increase of 1.9% in same-store sales for November 2011. Increase in comparable store sales was primarily driven by increased prescription counts and growth at pharmacy same store sales, partially offset by a decline in same store sales at front-end.
For the month of November, front-end same-store sales inched down 0.6%. However, Pharmacy same-store sales improved 3.1 % despite a 182 basis point headwind from new generic introductions. Besides, prescriptions count also increased 0.8% at comparable stores.
Total drugstore sales inched up 1.4% year over year to $2,404 million for November 2011. During the period, prescription revenue contributed 68% of drugstore sales while third party prescription revenue accounted for 96.6% of pharmacy sales.
For the thirteen-week period ended November 26, 2011, the company reported same store-sales increase of 2% with total drugstore sales increasing 1.8% to 6,289 million. The company’s pharmacy same store sales reported a growth of 2.9%, while remaining flat for the front-end same store sales. Prescription counts registered a growth of 0.5% during the period.
For the above mentioned period, prescription revenue contributed 68.7% of drugstore sales while third party prescription revenue accounted for 96.4% of pharmacy sales.
For the thirty-nine week period ended November 26, 2011, the company reported an increase of 1.6% in comparable store sales with total drugstore sales rising 1.2% to $18,901 million. Same-store sales growth at pharmacy and front-end were 1.9% and 0.8%, respectively. Prescription counts registered a growth of 0.4% during the period.
For the same period, prescription revenue contributed 68.4% of drugstore sales while third party prescription revenue accounted for 96.4% of pharmacy sales.
Looking ahead, Rite Aid expects fiscal 2012 revenue to be between $25.8 billion and $26.1 billion based on same-store sales increase of 0.75% to 2.0%. Net loss is now expected to be in the range of $345 million to $495 million (or 40 cents to 56 cents per share).
Headquartered in Camp Hill, Pennsylvania, Rite Aid Corporation operates in a highly fragmented specialty retail sector and faces intense competition from CVS Caremark Corporation (CVS), Walgreen Co. (WAG) and Wal-Mart Stores Inc. (WMT).
Rite Aid Corporation currently has a Zacks #2 Rank, implying a short-term Buy rating on the stock. We hold a long-term Neutral recommendation on the stock.
CVS CAREMARK CP (CVS): Free Stock Analysis Report
RITE AID CORP (RAD): Free Stock Analysis Report
WALGREEN CO (WAG): Free Stock Analysis Report
WAL-MART STORES (WMT): Free Stock Analysis Report
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment