Leading drugstore chain operator Rite Aid Corporation (RAD) reported a marginal increase of 1.8% in same-store sales for the four weeks ended June 25, 2011. Results improved somewhat from a growth of 1.3% in May 2011.
For the month of June, front-end same-store sales increased 1.5%. Pharmacy same-store sales in the month improved 1.9% despite a 163 basis point headwind from new generic introductions. Prescriptions count increased 0.4% at comparable stores.
Total drugstore sales increased 1.0% year over year to $1,928 million for June 2011. In the four-week period, prescription revenue contributed 67.6% of drugstore sales while third party prescription revenue accounted for 96.5% of pharmacy sales.
For the seventeen-week period ended June 25, 2011, the company reported same-store sales increase of 1.0% with total drugstore sales increasing 0.2% to $8,294 million. Prescription revenue contributed 68.5% of drugstore sales while third party prescription revenue accounted for 96.5% of pharmacy sales.
Rite Aid posted a first quarter loss of 7 cents a share, beating the Zacks Consensus Estimate of a loss of 12 cents per share.
Looking ahead, Rite Aid expects fiscal 2012 revenue to be between $25.7 billion and $26.1 billion based on same-store sales increase of 0.5% to 2.0%. Net loss is now expected to be in the range of $370 million to $560 million (or 42 cents to 64 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 #3 Rank, implying a short-term Hold rating on the stock. Besides, we hold a long-term Underperform 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
Be the first to comment