Rite Aid Loss Narrower Than Expected

The company did actually lower its 2013 expectations and for comparable sales. Rite Aid said that its same-store sales for the quarter were flat over the prior year’s 13-week period. That report consists of a 1.4% increase in front-end sales, but those were offset by a 0.7% decrease in pharmacy sales. The earnings report said that the weak pharmacy sales included roughly a 750 basis point negative impact from new generic introductions, while prescriptions filled in same stores rose by 4.0%.

Prescription sales accounted for 67.5% of total drugstore sales, and third-party prescription revenue was 96.5% of pharmacy sales. One issue that has helped is that Rite Aid has grown to roughly 25 million members now.

Shares are up 2% to $1.34 so far this morning and the 52-week trading range is $0.85 to $2.12. Unfortunately, Rite Aid remains a troubled story that has not gone very well for most shareholders.

JON C. OGG