Leading drugstore chain operator Rite Aid Corporation (RAD) reported a marginal increase of 0.5% in same-store sales for the four weeks ended April 23, 2011. Results improved marginally from a decline of 0.1% in March 2011.
For the month of April, front-end same-store sales decreased 0.4%. Pharmacy same-store sales in the month improved 1.0% despite a 133 basis point headwind from new generic introductions. Prescriptions count increased 0.7% at comparable stores.
Total drugstore sales decreased 0.4% year over year to $1.954 billion for April 2011. In the four-week period, prescription revenue contributed 68.3% of drugstore sales while third party prescription revenue accounted for 96.5% of pharmacy sales.
For the eight-week period ended April 23, 2011, the company reported same-store sales increase of 0.2% and total drugstore sales decline of 0.7% to $3.904 billion. Prescription revenue contributed 68.8% of drugstore sales while third party prescription revenue accounted for 96.5% of pharmacy sales.
For the eight-week period ended April 23, 2011, Front-end same-store sales decreased 1.1%. Pharmacy same-store sales during the period increased 0.9%. Prescriptions filled at comparable stores improved 0.6%.
Rite Aid posted a fourth quarter loss of 24 cents a share, broader than the Zacks Consensus Estimate of a loss of 21 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, the company retains a long-term Neutral recommendation on the stock
CVS CAREMARK CP (CVS): Free Stock Analysis Report
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