Leading drugstore chain operator Rite Aid Corporation (RAD) reported a marginal increase of 1.3% in same-store sales for the five weeks ended May 28, 2011. Results improved somewhat from a growth of 0.5% in April 2011.
For the month of May, front-end same-store sales increased 1.8%. Pharmacy same-store sales in the month improved 1.0% despite a 129 basis point headwind from new generic introductions. Prescriptions count increased 0.1% at comparable stores.
Total drugstore sales increased 1.0% year over year to $2,463 million for May 2011. In the five-week period, prescription revenue contributed 68.6% of drugstore sales while third party prescription revenue accounted for 96.4% of pharmacy sales.
For the thirteen-week period ended May 28, 2011, the company reported same-store sales increase of 0.8% with total drugstore sales coming in flat at $6,366 million. Prescription revenue contributed 68.7% of drugstore sales while third party prescription revenue accounted for 96.5% of pharmacy sales.
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 #4 Rank, implying a short-term Sell rating on the stock. Besides, we hold a long-term Underperform recommendation on the stock.
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RITE AID CORP (RAD): Free Stock Analysis Report
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